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A payment plan agreement is established between a customer and a creditor, requiring the debtor to repay their debt according to agreed terms. These plans are often adopted for expensive items and services. They can benefit buyers by alleviating immediate financial burdens through incremental payments, while sellers may earn additional income by charging interest. Payment plans are versatile and applicable to various goods or services, but are particularly common for high-cost purchases. Buyers needing immediate access to an item may find payment plans advantageous, even though they may end up paying more than the original price if interest is charged.