What Is Delinquency?

What Is Delinquency?

By Charles Joseph | Editor, Financial Affairs
Reviewed by Corey Michael | Senior Financial Analyst

Delinquency refers to the act of committing a minor crime or failing to fulfill an obligation. For young people, delinquency often means participating in illegal activities or behaviors that violate societal norms and regulations. In financial terms, delinquency refers to the failure to make payments on a loan or credit card on time.

Related Questions

1. What is juvenile delinquency?

Juvenile delinquency refers to the participation of minors – usually between the ages of 10 to 18 – in illegal behaviors or activities. Examples could include truancy, vandalism, stealing, or drug use.

2. What causes delinquency?

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Delinquency can be caused by a variety of factors which often integrate. They can range from familial influences, peer pressure, socio-economic status, lack of education, and personality or psychological factors.

3. What does it mean when a loan is ‘delinquent’?

If a loan is ‘delinquent’, it means the borrower has failed to make their scheduled payments on time. This is often seen as a sign of financial distress.

4. How can delinquency be prevented?

Preventing delinquency typically involves addressing its root causes. This can involve providing better educational opportunities, establishing programs to assist low-income families, ensuring children and adolescents have positive role models, and implementing effective counseling and support systems for those in need.

5. What are the implications of delinquency?

Delinquency can have numerous implications. For an individual, it could lead to further criminal behavior, jail time, or fines. Financial delinquency can result in impaired credit scores, making it harder to secure loans in the future. On a societal level, high rates of delinquency can contribute to social instability and increased crime rates.