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A payment plan agreement is established between a debtor and a creditor, binding the debtor to repay the debt based on the contract's terms. This approach is common for expensive items or services, allowing customers to pay in installments, thus alleviating upfront financial burdens. Businesses may opt to offer payment plans as a strategy to increase sales, with the potential to earn more through interest charges. Customers benefit from immediate access to goods or services, making payment plans a practical choice. Payment plans can be utilized for various goods and services, and free agreement templates can be found online.