DEFAULTERS Meaning and
Definition
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Defaulters are individuals or entities that fail to fulfill their obligations or commitments as agreed upon. In the context of finance or credit, defaulters are borrowers who fail to make timely payments towards their debt. When a borrower defaults, they breach the terms of their loan agreement, often by neglecting to make required payments for a certain period of time. This failure to meet financial obligations can occur in various forms, such as missing loan repayments, failing to make payments on a credit card, or neglecting to pay bills or rent.
Defaulters can have significant consequences, both for the individual or entity in question and for those to whom they owe money. For individuals, defaulting on debt often leads to a damaged credit score, making it difficult to secure future loans or credit and potentially leading to higher interest rates. Defaulters may also face legal action from creditors or collection agencies seeking to recover the outstanding debt through various means like wage garnishment or asset seizure.
In a wider sense, the term "defaulters" can extend beyond the realm of finance. It can refer to individuals who fail to fulfill other obligations, such as meeting deadlines, completing assigned tasks, or honoring contractual agreements. In these non-financial contexts, defaulters often face consequences such as penalties, loss of privileges, or strained relationships due to their failure to fulfill their obligations.
Common Misspellings for DEFAULTERS
Etymology of DEFAULTERS
The word "defaulters" originated from the French word "défaut" which means "failure" or "fault". It can be traced back to the Latin word "defectus" which means "failure" or "desertion". The term "defaulters" emerged in the English language in the 17th century and refers to individuals who fail to fulfill their financial obligations or who fail to meet certain requirements.
Similar spelling words for DEFAULTERS
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