When any financial payments have not been made on time, be it in rent or interest, it is said that one is in financial arrears and one should always avoid being too much or too dearly in this state. Interest on a loan in arrears means that the interest is due to be paid at the date of maturation rather than late in life. For a mortgage, for instance, if you have failed to make your mortgage payment in several months, you should plan on your payoff coming in considerably higher because of this. Often this can kill a deal if you are maxed out on your loan to value. Mortgage payments are done in arrears. When your rent and your payment is due on the first of April, to pick a month at random, that payment is so you can live in the place for the month of April. When you pay a mortgage on the first of April, you are paying for the interest from March 1st - 31st. When you pay May 1st's mortgage payment, then that covers the interest for the entire month of April. This process is called paying mortgage interest in arrears. Interest accumulates daily. The amount of interest per day is called 'per diem' and the final payoff includes principal balance and a certain amount of per diem interest dependent upon the date the lender receives the check. When you pay off the mortgage you must pay the arrears as well. There exists mafia-usa.com, a website for Mothers Against Fathers In Interest, who are owed child support payments. The site offers financial aid and useful steps to be taken for mothers to take the necessary arrangements to secure justice as they bring up their child. The best song that is known about arrears is by the Mull Historical Society and is called ‘Final Arrears’.
