when a borrower who is overdue on their payments receives their next account statement the balance owed will be the current balance plus their overdue balance plus any late charges and interest fees to bring the account up to good standing the borrower must make the required minimum payments including any late fees or they may be further penalized 
a lender may also increase the interest rate on the account as a penalty which increases the amount owed lenders can often decrease or increase interest rates depending on payment history 6an individual or business that is 30 days behind schedule on a loan payment may be reported delinquent to the credit bureaus after 180 days of not making payments on an overdue account the debtor may not have the option to pay in installments anymore 4usually by this time the lender will have charged off the loan and sold it to a debt collection agency in a charge off the lender writes off the loan amount as a loss with the loss depending on any salvage value that might be obtained from a sale uncollected debts will still be sought out even after a charge off collection agencies can often be more aggressive and proactive than a lender s collection department also continuing to report damaging information that affects a credit score loans are not the only type of agreement subject to past due penalties other agreements that can involve past due delinquencies include tax obligations mobile phone contracts and lease agreements each contract will have its own provisions for the occurrence of past due payments moreover all types of missed payments can be reported to credit bureaus for credit reporting purposes there can be many options for resolving all kinds of unpaid debts including bankruptcy settlement and debt consolidation loan offers ultimately it s best to take proactive measures to ensure debt is paid on time in order to avoid expensive penalties and costly exit strategies 