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A payment plan agreement is formed between a debtor and a creditor, binding the debtor to repay the debt as per the contract's terms. Such agreements are commonly adopted for expensive items or services, facilitating purchases by breaking down costs into incremental payments. This arrangement benefits both parties: it alleviates the buyer's immediate financial burden while allowing the seller to potentially earn more through interest charges. Payment plans can be tailored for various goods and services, and if the buyer requires an item urgently, opting for a payment plan might be the most suitable choice. Options for free agreement templates can usually be found online.