Arrears: Difference between revisions
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imported>Doug Williamson (Create the page to align with qualifications material.) |
imported>Doug Williamson (Generalise to cover obligations other than borrowings.) |
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#Payments made 'in arrears' are the opposite of ones paid in advance. For example, quarterly payments in arrears, over a 12-month period, would be paid at the ends of months 3, 6, 9 and 12. If the payments had been made 'in advance' the first payment would instead be at the start of the year, with the three subsequent payments being 3, 6 and 9 months later. | #Payments made 'in arrears' are the opposite of ones paid in advance. For example, quarterly payments in arrears, over a 12-month period, would be paid at the ends of months 3, 6, 9 and 12. If the payments had been made 'in advance' the first payment would instead be at the start of the year, with the three subsequent payments being 3, 6 and 9 months later. | ||
#'Arrears' can also mean amounts owing and not yet paid, which should already have been paid. A borrowing which is 'in arrears' in this sense means that the borrower has not met their agreed schedule of | #'Arrears' can also mean amounts owing and not yet paid, which should already have been paid. A borrowing (or other obligation) which is 'in arrears' in this sense means that the borrower (or other obligor) has not met their agreed schedule of payments. | ||
Revision as of 11:24, 4 July 2015
- Payments made 'in arrears' are the opposite of ones paid in advance. For example, quarterly payments in arrears, over a 12-month period, would be paid at the ends of months 3, 6, 9 and 12. If the payments had been made 'in advance' the first payment would instead be at the start of the year, with the three subsequent payments being 3, 6 and 9 months later.
- 'Arrears' can also mean amounts owing and not yet paid, which should already have been paid. A borrowing (or other obligation) which is 'in arrears' in this sense means that the borrower (or other obligor) has not met their agreed schedule of payments.
