Terms : Arrearages

Arrearages refer to unpaid or overdue amounts, typically in the context of financial obligations such as debts, rent, or other payments. It signifies the accumulation of payments that have not been made by their due dates, resulting in a backlog or arrears.

For example, if an individual has overdue rent, unpaid bills, or outstanding debts, these unpaid amounts collectively form arrearages.

It indicates a financial obligation that has not been met according to the agreed-upon terms, and resolving arrearages often involves catching up on the overdue payments to bring the financial account up to date.

Let's consider a scenario where an individual has a monthly rent of $1,000. If this person fails to make the rent payment for three consecutive months, they would then have arrearages of $3,000. This is because they are behind on their payments, and the accumulated amount of $1,000 for each month that they missed constitutes the arrearages in this case.

Resolving the arrearages would involve paying the overdue rent to bring the financial obligation up to date.