A situation that describes a financial asset (e.g., a loan) when the counterparty (debtor, borrower), fails, or has failed to make a payment when contractually it falls due.
Past due also refers to all payments associated with a financial obligation that have not been made by or on the due date. Typically, agreements involving contractual payment can have provisions for past due payments, such as credit cards, auto loans, student loans, mortgages, invoices with suppliers, among others.
For more, see: past due (accounting).
