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A payment plan agreement is established between a debtor and a creditor, outlining the terms for repaying a debt. These plans are commonly utilized for expensive goods and services, providing benefits for both parties. For the buyer, payment plans alleviate the financial burden by breaking down the total cost into smaller installments. For sellers, offering payment plans can lead to increased revenue through interest charges on the repayment. While payment plans can be advantageous, they can also lead to the buyer paying more than the original price, especially if interest is involved. Payment plans are flexible and can be adapted for various products and services.