Investopedia

Continue to Site »

Arrears

Filed Under »
Dictionary Says

Definition of 'Arrears'

Overdue debt, liability or obligation. An account is said to be "in arrears" if one or more payments have been missed in transactions where regular payments are contractually required, such as mortgage or rent payments and utility or telephone bills.
Investopedia Says

Investopedia explains 'Arrears'

The term "in arrears" does not necessarily have a negative connotation in certain contexts such as fixed-income instruments, where it may indicate that interest payments are simply made at the end of a period. For example, mortgage interest in the U.S. is paid in arrears, which means that in the case of monthly payments, each payment covers principal repayment and mortgage interest for the month preceding the payment due date.

Articles Of Interest

  1.

    Debt Consolidation Made Easy

    These five steps can help get you out of debt faster and easier than you'd ever imagined.

  2. A Lifeline For Those Drowning In Debt

    Don't wait to be saved, find out where the lifesaving devices are and hang on tight!

  3. The Benefits Of Mortgage Repayment

    Buying a home may be the biggest debt you'll ever incur. Learn why you should retire it sooner, rather than later.

  4. How Much Debt Can You Handle?

    Follow these five steps to manage debt without cutting up your credit cards.

  5. What You Need To Know About Bankruptcy

    Don't choose this last-resort option until you learn how it will affect your future.

  6. Zero-Coupon Bond

    A zero-coupon bond or ‘no coupon’ bond is one that does not disburse regular interest payments. Instead, the investor buys the bond at a steep discount price; that is, at a price ...

  7. Hormel Transforming, But Valuation Already Ahead Of It

    Hormel is very well-run and has above-average growth prospects, but investors have already bid the shares up accordingly

  8. It's Still Miller Time In The Emerging Markets

    SABMiller is expensive, but the company's long-term growth potential in emerging markets is enormous.

  9. Financial Markets: Capital Vs. Money Markets

    Two commonly used components of the financial market are money markets and capital markets. Find out the similarities and differences between them.

  10. After Some Preening, American Eagle Could Fly Again

    Management has to reinvest in the business, but the market seems to be undervaluing American Eagle's cash flow prospects.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center