Final answer:
User-defined payment dates are independent from regular billing cycles and the debt generally remains considered in arrears, though additional fees can be avoided if the payment plan is followed.
Step-by-step explanation:
When a customer agrees to make payments on specific dates, these are often user-defined payment dates that are independent from the regular billing cycle. However, the debt is not typically removed from being considered in arrears; instead, the customer and the company have agreed upon a payment plan that, if adhered to, avoids additional late fees or penalties outlined in the credit terms. Considering the information provided, if the payment remains unpaid, the credit card company will charge an initial late fee and additional fees each day the payment is delayed.
Using a credit card means that the customer is taking on a short-term loan and the credit card company pays the seller immediately on behalf of the cardholder. At the end of the month, the cardholder then owes this amount to the credit card company. If the agreed upon payment plan is followed appropriately, it can help manage the debt and avoid additional charges.