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A payment plan agreement is established between a debtor and a creditor, obligating repayment according to contract terms. This summary explores the reasons for adopting payment plans, common items and services involved, and sources for free agreements. Payment plans are frequently used for expensive purchases, allowing buyers to manage costs by making installment payments, thereby alleviating upfront financial burden. For sellers, offering payment plans can increase total revenue through interest charges. If a buyer requires an item immediately, opting for a payment plan may be the most feasible solution, despite the potential for a higher total cost due to interest.