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
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.