Arrears, in financial terms, refers to the unpaid or overdue amount of money that is owed or should have been paid by a borrower or debtor. It represents the outstanding payments or obligations that have not been met within the agreed-upon timeframe or payment schedule. When a borrower falls behind on their payments or fails to make timely payments, they are said to be in arrears. Arrears can occur in various financial contexts, such as loans, mortgages, rent, utility bills, or credit card payments.