What does "in arrears" indicate regarding payment timing?

The term "in arrears" specifically refers to a payment schedule in which payments are made after the service or obligation has been fulfilled. This means that the payment is made at the end of each period, rather than in advance or on a flexible schedule. For example, if rent is due in arrears, the tenant would pay for the month of December at the end of that month, rather than at the beginning. This payment method is common in various financial agreements, making it essential to understand for effective financial planning and management.

In contrast, payments made upfront may refer to paying for services or goods before receiving them, while a flexible schedule typically indicates a variable timing of payments based on agreement or circumstances. Payments made through credit involve borrowing funds to make a purchase, with the expectation of paying it back later, which doesn't inherently relate to the defined timing of when payments are considered "in arrears."