Arrears

Arrears refers to the state of being behind in payments, dues, or obligations. It often applies to debts, rents, wages, or any financial commitments that have not been settled by their due date. Individuals or entities in Arrears may face penalties, interest charges, or legal actions for failing to meet their financial obligations in a timely manner.

Arrears meaning with examples

• After losing his job, John fell into Arrears on his mortgage payments, which worried his family greatly. The bank notified him of the missed payments, but he was determined to catch up once he found another source of income. He started budgeting closely, prioritizing essential expenses to make ends meet and clear the Arrears as soon as possible.
• The community center was struggling financially, with several of its operational costs in arrears. This situation forced them to launch a fundraising campaign to gather additional resources. They organized events and reached out to local business sponsors, hoping to raise enough funds to cover their debts and continue offering valuable services to the neighborhood.
• Renters in the apartment complex were notified that their rent was in Arrears due to a system error. The property management team quickly rectified the issue and assured residents there would be no late fees incurred. However, some tenants remained concerned about their credit scores, fearing any negative impact despite the misunderstanding surrounding the arrears.
• The utility company informed Sarah she was in Arrears on her electricity payments, and she faced the risk of disconnection. Understanding the urgency of the matter, she immediately arranged a payment plan to address the overdue amount. By collaborating with the billing department, she could restore her service and avoid further financial strain due to arrears.