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A payment plan agreement is a contract between a customer and a creditor outlining terms for repaying a debt. These agreements are commonly used for expensive items or services, benefiting both parties. They alleviate the financial burden on the buyer by allowing costs to be divided into manageable payments, while also enabling the seller to potentially earn more through added interest. Payment plans can be applied to a wide range of goods and services, making them a flexible financing option. The tutorial will discuss the reasons for utilizing payment plans, popular items and services they are associated with, and where to find free agreement templates.