What it is:
Past due means overdue. Typically, a bill is past due if the borrower is 30 days past the payment deadline.
How it works/Example:
For example, let's assume your credit card payment is due on December 15. You forget to make the payment. On January 16, you finally remember. By then, though, it's too late. Your bill is past due.
Some accounts have grace periods (often 10 days). During the grace period, the creditor might not assess a late fee or other penalty.
Why it matters:
Past due bills often incur late fees, higher interest rates, penalties and other charges. Worst of all, the credit rating (and even lowering your credit rating). In some cases, a bill get so past due (say, 90 or 180 days), that the considers the account in default and may charge off the balance. That doesn't the customer or borrower doesn't owe the anymore; it just means the doesn't think it'll ever get the payment. At that point, it might assign or sell the account to a collection agency, which try to collect the balance.might report the late payment to the reporting agencies, leaving a mark on your