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A debt payment plan agreement involves a debtor and creditor when full debt payment isn't possible. This plan allows the debtor to make incremental payments, resolving the debt over time. Typically due monthly, these payments can be scheduled at different frequencies. Creditors may agree to a reduced payment amount or extended repayment terms for long-standing debts. Additionally, if high interest rates prevent repayment, a debtor might consolidate outstanding balances through an agreement with a third party to manage the debt more effectively. Important details must be clearly outlined in the contract.