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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 often utilized for expensive items or services, allowing customers to spread the cost over time and reducing their immediate financial burden. Sellers can benefit by offering payment plans, as it encourages sales and allows them to charge interest, resulting in a total repayment that exceeds the original price. Payment plan agreements can be used for various goods and services, and it's advisable to find a free template or example for creating one. Ultimately, these agreements provide a practical solution for both buyers and sellers in financing purchases.