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A debt payment plan agreement is established between a debtor and a creditor when the debtor cannot pay the full amount owed. This plan allows the debtor to make incremental payments until the debt is fully resolved. Payments are typically due monthly but can be scheduled with different frequencies. In some cases, creditors may agree to a lower repayment amount or extend the repayment period, especially for long-standing debts. Additionally, debtors consolidating outstanding balances due to high interest rates might negotiate with a third party to combine their debts into a single agreement. It's essential to include all terms in the contract.