Default
Content
Definition
Default is the failure to repay a debt including interest or principal on a loan or security when due.
Usage and Context
Default happens in loans and credit agreements. When a person or business can`t make their payment on time, it`s called a default.
Frequently asked questions
- What is the failure to pay interest or principal on a loan or security when due? Default is when you can`t make a scheduled payment for a loan or financial product on time.
- What is the meaning of default in repayment of loan? Default means not being able to pay back a loan or interest according to the plan.
- What is the failure of a borrower to repay the loan called? When a borrower can`t repay their loan on time, it`s called a default.
Benefits
Avoiding default keeps your credit score healthy. It helps you get future loans more easily.
Conclusion
Default means not paying a loan on time. Avoiding it is key for good financial health.
