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A debt payment plan agreement facilitates a structured repayment between a debtor and a creditor when the debtor cannot pay the full amount owed. This plan allows the debtor to make incremental payments until the debt is fully repaid, typically on a monthly basis, though variations in payment frequency can be arranged. In certain cases, creditors may permit reduced payments or extended terms, especially for long-standing debts. Debtors consolidating high-interest balances with a third party can negotiate a single agreement to pay off multiple debts. Key elements must be clearly detailed in the contract to ensure all parties understand the terms of the repayment plan.