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A payment plan agreement outlines a contract between a customer and a creditor, binding the debtor to repay the owed amount based on agreed terms. Such agreements are commonly adopted for expensive items or services, as they alleviate the financial burden by allowing customers to make incremental payments. This arrangement can benefit sellers by enabling them to charge interest, ultimately resulting in higher total payments from buyers. Payment plans are versatile and can apply to various goods and services. For those interested in creating a payment plan agreement, there are resources available to find free templates.
