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In this video, the concept of a debt payment plan agreement between a debtor and creditor is discussed. Such agreements are formed when a debtor lacks the funds to repay the full debt amount upfront. Creditors may allow for incremental payments through a plan, enabling the debtor to pay off the debt in installments, typically on a monthly basis, though other payment frequencies can be arranged. Sometimes, creditors may accept a reduced amount or extend repayment terms, particularly with long-standing debts. Additionally, debtors consolidating high-interest balances might negotiate with third parties to combine outstanding debts into a single agreement, which should be detailed in the contract.