Past Due

The term past due described a debt obligation which a borrower has to fulfill that has not been met after the due date.

The term is usually used together with the number of days to indicate how long a payment has been over due.

For example, a car loan payment that is 30 days late is described as 30 days past due.

When an account is more than 30 days past due, it is said to be in delinquency.

It must be noted that when a payment is 30 days past due, it implies that payment has not been made for way more than 30 days.

This is because for credit cards for example, when a cardholder receives a statement, he or she is given a payment due date that is about a month’s time from the statement date to make payment.

This means that for a card holder to get to 30 days past due, he or she would have not made payment for the days of receiving the statement to the due date, plus 30 days.

It’s just that the days after the due date would be counted for delinquency.

Such lateness usually come with late payment fees. And a borrower would have to pay the outstanding payments plus the late charges to have the credit facility reinstated back to normal.

While prompt full repayments would show up on a credit report as a sign of a responsible borrower, delinquencies would also show up to tell on a borrower about his late payments.

This can make new applications for products such as mortgages and personal loans problematic.

Depending on the terms of a credit facility, an account would go into default when non-payment hits a specified number of days past due.

Grace Period

Interest Rate Cap

Negative Amortization

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