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A payment plan agreement is a contract between a debtor and a creditor that outlines the terms for repaying a debt. These plans are commonly used for expensive items or services, easing the financial burden on buyers by dividing costs into manageable payments. Businesses may choose to offer payment plans, which can benefit both parties; buyers gain immediate access to goods or services, while sellers may receive more than the original price by charging interest. This structure is particularly beneficial when a buyer requires an item immediately, making payment plans a popular solution. Additionally, resources for finding free payment agreement templates are available.