State of Arrears

A State of Arrears is a legal state in which a borrower (of a debt) has missed one or more required loan payments (to a lender).

Context:
- It can be associated with a Late Borrower (from a late borrower population).
Example(s):
- when late on Car Loan Payments.
- when late in 3-Months in Arrears.
- …
Counter-Example(s):
- In Good Financial Standing.
See: Child Support, Debt, Renting, Late Fee.

References

(Wikipedia, 2019) ⇒ https://en.wikipedia.org/wiki/Arrears Retrieved:2019-2-18.
- Arrears (or arrearage) is a legal term for the part of a debt that is overdue after missing one or more required payments. The amount of the arrears is the amount accrued from the date on which the first missed payment was due. The term is usually used in relation with periodically recurring payments such as rent, bills, royalties (or other contractual payments), and child support. Payment in arrear is a payment made after a service has been provided, as distinct from in advance, which are payments made at the start of a period. ^[1] For instance, rent is usually paid in advance, but mortgages in arrear (the interest for the period is due at the end of the period). Employees' salaries are usually paid in arrear. Payment at the end of a period is referred to by the singular arrear, to distinguish from past due payments. For example, a housing tenant who is obliged to pay rent at the end of each month, is said to pay rent in arrear, while a tenant who has not paid rental due for 30 days is said to be one month in arrears. Precise usage may differ slightly (e.g. “in arrear" or "in arrears" for the same situation) in different countries.

https://www.washingtonpost.com/business/2019/02/12/record-million-americans-are-months-behind-their-car-payments-red-flag-economy/?utm_term=.3eb1a23f873f
- QUOTE: A record 7 million Americans are 90 days or more behind on their auto loan payments, the Federal Reserve Bank of New York reported Tuesday, even more than during the wake of the financial crisis. Economists warn that this is a red flag. Despite the strong economy and low unemployment rate, many Americans are struggling to pay their bills. ...

(2019). “Total Household Debt Rises as 2018 Marks the Ninth Year of Annual Growth in New Auto Loans - Auto Loan Balances Continue Rising; Younger Borrowers Struggle With Auto Debt Delinquencies."
- QUOTE: ... Total household debt increased by $32 billion (0.2%) to $13.54 trillion in the fourth quarter of 2018. It was the 18th consecutive quarter with an increase and the total is now $869 billion higher than the previous peak of $12.68 trillion in the third quarter of 2008. Furthermore, overall household debt is now 21.4% above the post-financial-crisis trough reached during the second quarter of 2013. The Report is based on data from the New York Fed’s Consumer Credit Panel, a nationally representative sample of individual- and household-level debt and credit records drawn from anonymized Equifax credit data. ...