If a debtor does not pay his contractual monthly rates on time, he is immediately in default. In daily business, it is common for a debtor to be reminded (prejudicial debt collection) before further steps such as debt collection and/or enforcement are initiated against him (Rechltiches Inkasso).

If such a debtor is in default, the creditor benefits from compensation provided for by law, such as reimbursement of the damage caused by delay or interest on arrears.