What term refers to unpaid or overdue debts?

The term that refers to unpaid or overdue debts is "arrears." This terminology is specifically used to describe amounts that are owed and have not been paid by their due date. When a payment is late, such as a loan installment, it falls into the category of arrears. This term helps to specify the nature of the obligation, emphasizing that payment is overdue.

In financial contexts, arrears can apply to various types of debts, including rent, loans, or any other scheduled payments that are not made on time. Understanding this concept is important, as it can affect one's credit score and the terms of future credit agreements.

While credit refers to the ability to borrow money or access goods and services with the promise to pay later, and liabilities represent all financial obligations of an individual or entity, defaults denote a situation where a borrower fails to meet the legal obligations or conditions of a loan. Each of these terms has distinct meanings that are relevant in financial discussions, but they do not specifically highlight the condition of being overdue like arrears does.