Arrears

Definition: Amounts due after the period in which the related service, interest, or obligation accrued; the word can also describe overdue payments.

Example

A mortgage payment includes interest accrued during the preceding month, so that interest is paid in arrears.

Keep the distinction clear

Paid in arrears does not necessarily mean delinquent. A scheduled payment made after accrual can still be on time.

Related terms

Interest · Prorate · Debit (Closing Statement)

Keep studying

Real Estate Prorations: Who Gets Debited and Credited?

References: California DRE: real estate glossary

Pronunciation (US): uh-REERZ (capitals show stress)

Pronunciation reference: Merriam-Webster