Which term means a debt that is overdue in payment?

• A. Delinquency
• B. Credit Score
• C. Credit Limit
• D. Financial Aid

Answer: (A)

Late debt payments are called delinquency. When you miss a due date on a loan, mortgage, or credit card, the payment is overdue and the account is marked as delinquent. This term focuses on the status of the payment itself—it's not paid when it's supposed to be, so it's considered past due. Delinquency can affect your ability to borrow in the future, and lenders may charge fees or raise interest, and it can show up on your credit report. This is different from a credit score (your overall creditworthiness), a credit limit (the maximum you can borrow), or financial aid (money to help pay for education). For example, if you fail to make the scheduled payment on time, that payment is delinquent until you bring it current.