What Are Arrears? Understanding Overdue Payments
Learn about arrears, a financial term for overdue payments. This video explains the meaning, usage, and importance of arrears in financial contexts, helping you prepare for the GRE and real-world financial discussions.
Imagine opening your mailbox to find a letter stating you’re three months behind on your rent payments.
Congratulations, you’ve just encountered the word arrears in real life.
Word type: Arrears is a plural noun, though it’s often used with a singular verb.
It’s pronounced uh-rears.
Meaning: Arrears refers to money that is owed and should have been paid earlier.
It specifically describes an unpaid, overdue debt or an unfulfilled obligation. In financial contexts, it often relates to payments that are past their due date.
Word history: The term arrears comes from the Old French word arere, meaning behind. This, in turn, originated from the Latin word ad retro, which literally means to backward.
The concept of being behind in payments has been baked into this word since its inception.
Antonyms: Some antonyms for arrears include advance, prepayment, and surplus.
Synonyms: Synonyms for arrears include debt, deficit, and backlog.
Examples use in sentences: The company fell into arrears on its loan payments during the economic downturn.
After losing his job, Tom found himself in arrears on his mortgage. The government promised to pay all pension arrears by the end of the fiscal year.
Common errors in use: A common mistake is using arrears in singular form. Remember, it’s always plural.
So you would say The tenant is in arrears, not The tenant is in arrear. Another error is confusing arrears with areas.
While they sound similar, they have entirely different meanings. Understanding arrears is crucial for the GRE, particularly if you’re aiming for a high score on the verbal section.
It’s a word that frequently appears in passages about finance, economics, or personal budgeting. Moreover, grasping its meaning and usage will help you in real-world financial discussions and document comprehension.
So, the next time you encounter arrears, whether in a GRE practice test or a real-life situation, you’ll know exactly what it means and how to use it correctly.
