Unpaid debts

Experimental visualization of narrower problems
Other Names:
Payment arrears
Misjudged borrowing practices
Overcommited borrowing
Inability to pay
Unpaid accounts
Unpaid death benefits
Unredeemed accounts

Debt settlement (also called debt reduction, debt negotiation or debt resolution) is a settlement negotiated with a debtor's unsecured creditor. Commonly, creditors agree to forgive a large part of the debt: perhaps around half, though results can vary widely. When settlements are finalized, the terms are put in writing. It is common that the debtor makes one lump-sum payment in exchange for the creditor agreeing that the debt is now cancelled and the matter closed. Some settlements are paid out over a number of months. In either case, as long as the debtor does what is agreed in the negotiation, no outstanding debt will appear on the former debtor's credit report.


In 1998, it was estimated that small businesses in the UK were owed £50 billion in unpaid invoices.

Related Problems:
National public debt
Related UN Sustainable Development Goals:
GOAL 8: Decent Work and Economic GrowthGOAL 17: Partnerships to achieve the Goal
Problem Type:
C: Cross-sectoral problems
Date of last update
21.04.2022 – 09:04 CEST