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A payment plan agreement is created between a customer/client and a party owed money, binding the debtor to repay the debt as per contract terms. Payment plans are widely adopted for expensive items/services, allowing buyers to make incremental payments and sellers to earn interest. This arrangement benefits both parties, as buyers can spread out costs and sellers can potentially earn more than the sales price. Payment plans can be used for various goods/services, and free agreement templates are available online.