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A payment plan agreement is established between a debtor and a creditor, outlining the terms for repaying a debt. These plans are commonly adopted for expensive items or services, allowing customers to make payments over time rather than one lump sum. This arrangement benefits both parties: it alleviates the immediate financial burden on the buyer and can increase total revenue for the seller through interest charges. Although payment plans are applicable to a wide range of goods and services, they are most popular for high-cost purchases. The tutorial also suggests where to find a free payment plan agreement template.