What describes debts that are due immediately?

Debts that are due immediately are best described as arrears. This term specifically refers to amounts that are owed and not yet paid when they are required to be settled. In financial contexts, being in arrears indicates that a payment is overdue, meaning that the individual or entity owes this debt and it is now critical that it is paid without further delay. The concept of arrears arises particularly in recurring payment situations where timely payments are expected, such as loans, rent, or service bills.

Understanding this distinction is valuable in personal financial management, as monitoring and addressing arrears is crucial for maintaining a good credit profile and avoiding further penalties or interest. This differs from the other choices; for example, overdue costs refer generally to expenses that have not been paid on their due date but do not specifically emphasize the immediacy of payment. Accumulated balances highlight trends in total debt over time rather than specific due dates, and fixed liabilities pertain to debts that require repayment over a specific term, which may not necessarily be due immediately.