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A payment plan agreement is a contract between a customer and a creditor, binding the debtor to repay the debt according to specified terms. These plans are commonly adopted for expensive items or services, allowing customers to avoid upfront costs by making incremental payments. This arrangement benefits both parties: the buyer alleviates financial burden, while the seller may increase total revenue by charging interest. Popular items for payment plans include high-cost goods, and free templates for such agreements can be found online. Overall, payment plans provide a practical solution for immediate access to desired products while managing finances.