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A payment plan agreement is a contract between a debtor and a party owed money, outlining repayment terms. Payment plans are commonly used for expensive items or services to ease financial burden for buyers, offering incremental payments. Sellers can charge interest, increasing the overall cost for the buyer. Payment plans can be beneficial for both parties, with sellers potentially making more than the sales price. If a buyer needs an item immediately, a payment plan may be a suitable option.
