Arrears

1. 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.
2. '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 repayments.

See also

• Open account
• Annuity