The word arrears means “end of period” when referring to annuities (an annuity is series of equal amounts occurring at equal time intervals, such as £1,000 per month for 20 years). If the recurring amount comes at the end of each period, the annuity is described as an annuity in arrears or as an ordinary annuity. For example, you borrow £10,000 on September 30 and your first monthly payment will be due on October 31, the second payment will be due on November 30, and so on. Payment at the end of a period is referred to by the singular arrear, to distinguish from past due payments.
Her relationship with her boyfriend has ended and her mortgage is in arrears. The average household in arrears owes more than £1,500 for electricity and £1,300 for gas. Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.
Why “With No Standing Arrear in Btech” Matters in Your Academic Journey
Payment made before a service is provided is common with rents, leases, prepaid phone bills, insurance premium payments, and Internet service bills. When the bill becomes overdue—say 30 days past the due date for payment—the account falls into arrears and the account holder may get a late notice and/or penalty. If you continue making regular payments each month after that, you are still in arrears for $500 until the time you make up the payment you missed. Similarly, if you paid $300 of that Jan. 15 payment, you are in arrears for $200 as of Jan. 16 until the time you pay it off and bring your account up to date. As noted above, arrears generally refers to any amount that is overdue after the payment due date for accounts such as loans and mortgages. Accounts can also be in arrears for things like car payments, utilities, and child support—any time you have a payment due that you miss.
- An annuity such as a loan repayment is a series of equal amounts of payment that occurs at equal time intervals—say for $250 per month for 10 years.
- This achievement demonstrates a student’s ability to meet academic standards and successfully progress through their chosen course of study.
- Arrearage also applies to dividends that are due but have not been paid to preferred shareholders.
In conclusion, being “with no standing arrear in Btech” is an achievement that holds great significance in your academic journey. It reflects your ability to meet academic standards, enhances employability prospects, opens doors for higher education opportunities, and brings personal satisfaction. By adopting effective strategies such as time management, seeking help when needed, regular review and revision, and active participation in class, you can avoid standing arrears and pave the way for a successful academic career. Remember that academic success is not only about grades but also about the knowledge gained and skills developed along the way. To be “with no standing arrear in Btech” means that a student has successfully cleared all subjects within the required timeframe and does not have any pending failed courses.
The word is most commonly used to describe an obligation or liability that has not received payment by its due date. Arrears, or arrearage in certain cases, can be used to describe payments in many different parts of the legal and financial industries, including the banking and credit industries, and the investment world. The term can have many different applications depending on the industry and context in which it is used. There are also instances where bills or liabilities come due after the service has been provided such as utility bills, property taxes, and employee salaries. These payments are known as payment in arrears, occur at the end of the period, and are not classified as late.
Payment in Advance vs. Payment in Arrears
Not in certain contexts, such as in bond trading, when arrears is a reference to payments that are made at the end of a specified period. Mortgage interest payments are paid in arrears and only suggest a negative connotation when the due date has passed. This means that the interest is due to be paid on the maturity date of the loan, instead of in bits and pieces during the life of the loan like an annuity payment.
Arrears Swap
They do, however, fall into arrears if you don’t pay them by the due date. For example, if your $500 loan payment is due on Jan. 15 and you miss the payment, you are in arrears for $500 as of the next business day. An in-arrears swap is an interest rate swap that sets (fixes) the interest rate and pays the interest at the end of the coupon period. In contrast, a standard swap sets the interest rate in advance, at the beginning of the coupon period, and pays the interest in arrears, at the end of the coupon period. The same distinction holds for other interest rate derivatives, e.g. caps, floors and swaptions.
Strategies to Avoid Standing Arrears
Arrears refers to a debt or payment that is still outstanding after the payment due date has passed. She added that Ms Winham had previously been subject to an eviction warrant in April 2014 after getting into rent arrears of £1,579 after she had stopped claiming housing benefit. “Mortgage arrears, people struggling with their mortgages, have actually been declining again since December,” he told the BBC. The FCA said Moneybarn had “failed to allow customers the ability to clear their arrears over a realistic and sustainable period”.
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. Arrearage also applies to dividends that arrears meaning in education are due but have not been paid to preferred shareholders. Because preferred shares have guaranteed dividends regardless of whether the company makes a profit or not, dividends are said to be in arrears if the company misses a cumulative dividend payment.
When an issuer makes $50 coupon payments semi-annually, this means the interest on the bond would have to accrue for six months before any payment is made to the bondholders. This also allows this accumulating cash to earn interest for the company before it is paid out. Some of the most common types of payments to be in arrears include payroll, mortgage, rent, car payment, child support, credit card, and taxes.
In some cases, such as bonds, arrears can refer to payments that are made at the end of a certain period. Similarly, mortgage interest is paid in arrears, meaning each monthly payment covers the principal and interest for the preceding month. In the competitive world of higher education, students are constantly striving to stand out from the crowd. One way to do this is by achieving academic success and maintaining a clean academic record. One term that often comes up in this context is “with no standing arrear in Btech.” In this article, we will explore the meaning of this phrase and why it holds significance in your academic journey. When two parties come to an agreement in a contract, payment is usually made before or after a product or service is provided.