2 min read
Definition
Arrears are payments behind schedule — a loan instalment, rent or invoice that is due and unpaid. A loan "in arrears" has one or more missed payments outstanding, distinct from a single missed payment promptly caught up.
Why it matters
Arrears are reported to the credit agencies and drag the score until cleared, and can escalate to a CCJ. See business loan arrears for how to clear them.
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