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Arrears

Debt, arrears & collections
A situation where payments are overdue and you are behind on what you owe.

Overview

Being in arrears is more serious than a single late payment.

Lenders may report arrears to credit agencies and take further action.

Why it matters

  • It can significantly reduce your score.
  • It can limit access to new credit.
  • It may lead to defaults if unresolved.

FAQs

Is arrears the same as default?

No. Arrears means you are behind, while default is usually a later, more serious step.

Can I recover from arrears?

Yes. Getting payments back on track can help rebuild your profile over time.

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