This article is playful look at the origin, etymology, and psychology, of the word ‘credit’. The article is intended to be a humorous and poetic dig at the word that has become central to our discussions, and as a historical reference to deepen our understanding. Of course, one of the underlying primary goals we work towards on a daily basis is getting into the housing or investment market, increasing your equity and building wealth through your various property strategies, and our debt reduction methods are central to this end.
In the realm of finance, few terms carry the same weight of lingering shame and persistent guilt as “arrears.” The word itself, borrowed from Old French arriere, meaning “behind,” casts a shadow — a specter of financial obligations unmet, of promises broken, and of time irrevocably lost. Arrears are not just overdue payments; they are reminders — haunting echoes of past mistakes, missed deadlines, and failed commitments. Like ghosts, they remain long after the event that caused them, casting a pall over the present and demanding attention until they are exorcised from your financial life.
The concept of arrears is rooted not only in the failure to pay on time, but also in the burden of time itself. Time, in this context, becomes the agent of haunting. Unlike debts that are settled quickly or through negotiated payment plans, arrears remain — persistent, unyielding, a symbol of what was promised but never delivered. Arrears are the unpaid rent, the forgotten mortgage payments, the unpaid loans, the bills that were ignored in the quiet hope that they might disappear. But they don’t disappear. They remain, waiting to be addressed, always lurking, always reminding you of their presence.
What makes arrears so insidious is that they carry with them more than just financial consequences. They are psychological markers of failure. In a society that increasingly equates financial health with moral character, falling into arrears is not merely a matter of missing a payment — it is a moral failing, a reflection of irresponsibility. It signals a lapse in discipline, a failure to manage one’s financial obligations, and an inability to live up to one’s promises. The person in arrears is not just someone who owes money; they are someone who has faltered in the face of responsibility, who has fallen short of expectations, who has failed to meet their commitments.
This sense of moral judgment is compounded by the practical consequences of arrears. Arrears, particularly when they accumulate, can lead to a cascading series of financial problems. Once a payment is missed, the lender often tacks on penalties — late fees, higher interest rates, and additional charges. These add up quickly, pushing the borrower further into debt. The longer arrears go unresolved, the greater the financial burden becomes. And with each new unpaid bill, the borrower’s credit score suffers, locking them out of future borrowing opportunities and deepening their sense of financial shame.
The ghostly presence of arrears is also a reflection of the tension between past and present. Arrears are the embodiment of time’s inevitable march. Each missed payment is a moment lost, a moment that cannot be recovered. Unlike other debts that might be paid off or forgiven, arrears carry the burden of history. They are a past that cannot be undone, a past that lingers, asking to be reckoned with. The very nature of arrears — an ongoing failure to meet a financial obligation — suggests that time, once passed, can never be reclaimed. It is gone, lost, irretrievable, much like the money that should have been paid.
The psychological impact of arrears is not just the guilt associated with missing a payment. It is the broader sense of dread that accompanies financial distress. Arrears are not just reminders of past financial missteps; they are also the precursors of future consequences. The longer the arrears persist, the more difficult it becomes to escape them. And the longer the debt remains unresolved, the greater the chance that it will spiral into other financial difficulties. The ghost of arrears, then, is not just a reminder of what was missed; it is a harbinger of the further burdens that await if the issue is not addressed. The longer you delay, the harder it becomes to escape.
In addition to their financial consequences, arrears also create a psychological distance between the individual and their financial institutions. The relationship between borrower and lender, once a partnership based on mutual trust, now becomes one of tension and suspicion. The borrower is no longer seen as a partner; they are a delinquent, someone who has failed to meet their obligations. This shift in perception carries with it not just financial consequences but social ones as well. The borrower becomes a pariah, someone to be avoided or mistrusted. In an increasingly credit-driven society, this shift in status can have long-lasting effects, not only on one’s ability to secure future loans but also on one’s standing within the broader community.
Yet, despite the negative connotations, there is a certain inevitability to arrears. In a world where the pace of financial obligations is ever-increasing, and the demands of creditors grow ever more insistent, it is no surprise that many individuals find themselves in arrears at some point in their lives. Financial hardship, job loss, unexpected expenses — these are the realities that make it difficult for many to keep up with their financial commitments. Arrears, in this sense, are a symptom of a broader systemic issue: the vulnerability of individuals in a world where financial pressures are constant, and the margins for error are thin.
But there is hope. Arrears are not a permanent condition. With effort, discipline, and, often, professional guidance, individuals can work their way out of arrears. A well-structured payment plan, the negotiation of terms with creditors, or even debt consolidation can provide a path forward. It requires time and commitment, but with a clear strategy, arrears can be resolved. In this way, arrears, while a symbol of failure, also offer an opportunity for redemption. They represent not just a moral and financial lapse, but also a chance for growth, change, and renewal.
The ghost of arrears, then, is not an eternal presence. It can be exorcised, banished, and left behind — if the effort is made. Arrears are a testament to the fragility of our financial systems and the challenges of managing our economic lives. But they are also a reminder of the resilience of the human spirit, of the ability to overcome, to pay what is owed, and to move forward. As the old saying goes, “the first step is always the hardest,” but it is a step that can eventually lead to the quiet rest of financial peace.
