Arrears

This term is generally used in combination with mortgages, installment payments and other payment obligations that are due and payable on certain dates. Arrears is when a debt remains unpaid following the date of maturity. When this money is past due and unpaid you are considered to be in arrears on that account. Once you are in arrears, you may start to be billed for late charges or finance charges. In addition, you could be sent to collections or begin to see negative effects on your credit report.

Back To Debt Glossary