Arrears

Arrears refer to overdue payments that someone was supposed to make by a certain date but has not paid yet. This can happen with loans, rent, mortgage, or bills. When payments are behind schedule, they are said to be in arrears. For example, if you missed paying your rent for two months, those unpaid months are in arrears. Being in arrears can lead to penalties, damage to credit scores, or legal action. Managing arrears promptly is important to avoid further financial issues and to maintain good standing with creditors or service providers.