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A Payment Plan Agreement is a plan for paying any outstanding debts. Different types of financing involve payment plans including mortgage loans, vehicle loans, and student loans. Within a payment plan, the borrower agrees to pay back a certain amount of money each month to repay the debt. Other types of payment plans, such as credit cards, will require a more flexible payment plan, with different amounts due each month. Prepayments may also be part of a payment plan where customers prepay for merchandise on a specified plan before actually receiving the merchandise.
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