Interest on Arrears: How It Accrues

How Texas calculates interest on child-support arrears

Rate & type: 6% simple interest per year (not compounded).

When a payment is “delinquent”: On the 31st day after its due date.

Threshold before interest: Interest begins only when you’re more than one full month behind, and it applies only to the portion over one month’s support.

What it applies to:

Unpaid ongoing arrears (before any arrears judgment): 6% simple interest from the delinquency date on the amount over one month, until paid or reduced to judgment.

Arrears reduced to a money judgment: 6% simple interest from the judgment date until paid.

Retroactive or lump-sum support ordered: 6% simple interest from the order date until paid.

How payments are applied (in order): current support → any non-delinquent support → principal arrears → interest → fees/costs.

Daily interest formula

interest=(arrears over 1 month)×0.06×days365\text{interest}=\big(\text{arrears over 1 month}\big)\times 0.06\times \frac{\text{days}}{365}interest=(arrears over 1 month)×0.06×365days​

Quick example

Order: $800/month due on the 1st.

No January payment. On Feb 1 you’re one month behind—no interest yet (not over one month).

No February payment. On Mar 3 (31 days after Feb 1), you’re $1,600 behind. Interest starts on $800 (the amount over one month).

Suppose you pay $1,000 on Apr 15. Application:

$800 to April’s current support

$200 to principal arrears (reduces the $800 “over-one-month” balance to $600)

Any accrued interest to date remains until later payments reach it

Interest from Mar 3 → Apr 15 on the $800:

800×0.06×43365≈$5.65800 \times 0.06 \times \frac{43}{365} \approx \$5.65800×0.06×36543​≈$5.65.

 After your $1,000 payment, you’d still owe: $600 principal arrears (over one month) + about $5.65 interest, plus March’s and any other current amounts as they come due.