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A monthly payment plan agreement allows a customer to make recurring payments for goods or services over time, typically suited for expensive items when the total cost is not immediately available. Such plans benefit both parties: the buyer can avoid a large upfront payment by spreading costs into monthly installments, while the seller can increase their profit through interest charges. However, if the seller charges interest, the total paid by the buyer will exceed the original price. Although payment plans provide immediate access to goods, waiting and saving for full payment could be a more financially prudent option.
