Updated April 14, 2023
A debt payment plan agreement is for any person or company that owes an amount of money that they cannot afford to pay immediately or under its current terms. In some instances, the creditor will allow the debtor to pay back a lesser amount or change the terms so that they will have a longer period to pay back the money owed.
If consolidating outstanding balances, often due to high interest rates, the debtor will make a deal with a third (3rd) party to pay off the outstanding amounts and consolidate the debt into one (1) agreement.
Debt Settlement Agreement – Use if the creditor is agreeing to make a deal for a lesser amount than the original debt.