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A payment plan agreement is established between a debtor and a creditor, outlining the terms for repaying debt. These agreements are commonly used for expensive items or services, enabling customers to spread payments over time, alleviating financial strain. Businesses may choose to offer payment plans, benefiting both parties: buyers can acquire necessary items without immediate full payment, while sellers can earn additional income through interest charges. Popular items for payment plans include electronics, furniture, and medical services. Free templates for such agreements can be found online. Utilizing a payment plan can be advantageous when immediate access to goods is required.