Arrears

This is the most common usage. If a payment is missed, the account is said to be "in arrears". For example, if a $500 loan payment was due on the 15th and remains unpaid on the 16th, the borrower is in arrears for that amount.

Unlike rent, which is usually paid in advance, mortgage interest is often paid in arrears, covering the interest accrued over the preceding month. 2. Common Types of Arrears arrears

Occurs when an employer owes employees back pay, often due to delayed salary hikes or retrospective pay revisions. This is the most common usage

Arrears can accumulate in nearly any sector involving recurring financial obligations: Unlike rent, which is usually paid in advance,

'Cyclic syndrome' of arrears and efficiency of Indian judiciary

Arise when governments fail to pay suppliers, contractors, or pensioners on time. This is often used as a form of "forced financing" to hide the true size of a fiscal deficit.

In some industries, it is standard practice to pay for services after they are consumed. This is known as "payment in arrear" and is generally not negative. Common examples include: