noun / verb
default
Failure to make a required payment or fulfill an obligation.
Borrowers who default on their loans risk losing their homes.
Etymology
Old French defaute meant failure or lack. Financial and legal uses specify what is missing: the payment or performance that an obligation requires.
More examples
- The loan is in default after several missed payments.
- The company defaulted on its contract to supply new equipment.
- Mortgage defaults increased as more workers lost their jobs.
Forms
default · defaults · defaulted · defaulting
defaulter noun — Someone who fails to fulfill an obligation.
Similar words
- breach
- Emphasizes violating a contract or duty, not necessarily nonpayment.
- delinquency
- Emphasizes overdue payments, which may not yet constitute default.