Definition, Meaning & Synonyms

default-on-a-payment

noun

/dɪˈfɔlt ɒn ə ˈpeɪmənt/

Definition

Failing to meet the legal obligations or conditions of a loan or agreement by not making the required payment.

Examples

If you default on a payment, it could negatively impact your credit score.
The company faced severe consequences after defaulting on a payment to its creditors.
Many individuals are at risk of defaulting on payments due to unexpected financial hardships.

Meaning

In financial terms, defaulting on a payment refers to the situation where a borrower does not pay back a debt in accordance with the agreed terms. This can lead to penalties, higher interest rates, or legal action.