What does it mean to be in arrears? If you have a debt and you miss or short pay an instalment on its due date, your account goes into arrears.

What Is a Debtor? A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities—such as bonds—the debtor is referred to as an issuer

Debt is the amount of money borrowed by one party, from another. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest. In simple words, debt is money borrowed from another party, for something you can't afford