People in financial trouble are advised to contact creditors to negotiate a payment plan
A payment plan can refer to paying off any outstanding debt, or sometimes more than one debt by means of consolidation into an organized payment schedule.
Different types of consumer financing involve a payment plan, such as car loans and point of sale retail loans. Within a payment plan for financing, the consumer pays back a fixed amount of money every month until the balance is cleared.
Credit cards require a more flexible payment plan, where there is a minimum required payment per month, and the borrower can decide how much to pay back and when.
A payment plan refers to a monthly amount being paid directly to the retailer as part of an installment schedule, in advance of receiving the merchandise.
A creditor is an entity (person or institution) that extends credit by giving another entity permission to borrow money intended to be repaid in the future.
A business that provides supplies or services to a company or individual and does not demand payment immediately is also considered a creditor, based on the fact that the client owes the business money for services already rendered.
Creditors can be classified as either personal or real. People who loan money to friends or family are personal creditors.
Real creditors such as banks or finance companies have legal contracts with the borrower, sometimes granting the lender the right to claim any of the debtor's real assets (e.g., real estate or cars) if they fail to pay back the loan.
Hence, option B is the correct answer
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