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A payment plan agreement is a contract between a debtor and a creditor that outlines repayment terms for a debt. Payment plans are commonly used for expensive items or services, allowing customers to divide costs into manageable payments. This approach benefits buyers by reducing upfront financial burden and allows sellers to potentially earn more through interest charges. Payment plans enable immediate access to needed items, making them a popular option for customers. The tutorial will discuss the reasons for adopting payment plans, common items and services associated with them, and sources for free agreement templates.