DEFAULTING ON Meaning and
Definition
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Defaulting on is a phrase used to describe the act of failing to fulfill or meet one's financial obligations or contractual agreements, particularly in terms of payment. When an individual or entity defaults on a loan, debt, or other financial obligation, it means they have failed to make the required payments within the agreed-upon timeline or terms.
Defaulting on a loan typically occurs when a borrower fails to make regular payments or completely disregards their financial obligations. This may be due to various reasons such as financial difficulties, unforeseen circumstances, or intentional avoidance. When someone defaults on a loan, it can have serious consequences, including penalties, increased interest rates, damage to credit scores, and even legal action taken by the lender or creditor.
In addition to loans, defaulting on other financial commitments such as mortgages, car payments, credit card bills, or rental agreements can also occur. It signifies a breach of contract or agreement between the two parties involved, where one party has failed to honor their responsibilities.
Defaulting on financial obligations can have far-reaching consequences, impacting an individual's creditworthiness, making it difficult to secure future loans or credit, and potentially leading to financial hardships. From a legal standpoint, it gives the creditor or lender the right to take legal action to recover the amount owed or seize collateral, depending on the terms of the agreement.
Common Misspellings for DEFAULTING ON
- sefaulting on
- xefaulting on
- cefaulting on
- fefaulting on
- refaulting on
- eefaulting on
- dwfaulting on
- dsfaulting on
- ddfaulting on
- drfaulting on
- d4faulting on
- d3faulting on
- dedaulting on
- decaulting on
- devaulting on
- degaulting on
- detaulting on
- deraulting on
- defzulting on
- defsulting on
Etymology of DEFAULTING ON
The word "default" originated from the Old French word "defaute" which meant "lack, deficiency, failure". It was derived from the Latin word "defaultus" which means "failure, inactivity", derived from "deficere" meaning "to fail" or "to be wanting". The addition of the preposition "on" to "default" simply indicates the action of failing specifically in the context of a particular obligation or responsibility. So, the phrase "defaulting on" denotes the act of failing to fulfill a specific obligation or responsibility.
