Definition

Verb: - To fail to fulfill a financial obligation, especially the failure to make a required payment on a debt or loan.

Usage

This verb is used to describe the specific action of not meeting a payment deadline or failing to repay borrowed money as agreed. It is typically followed by the object of the debt (e.g., a loan, mortgage, payment).

Examples

• Verb:
  • If you default on your mortgage, the bank may foreclose on your house.
  • The company defaulted on its bond payments, leading to bankruptcy.
  • He risked ruining his credit score by defaulting on his car loan.

Advanced Usage

• Legal and Financial Context: The term is most common in formal financial, legal, and contractual contexts. It implies a breach of contract.
• Prepositional Use: The verb is always used with the preposition "on," which is followed by the specific obligation (e.g., a loan, debt, payment).

Variants and Related Words

• Default (n): The act or instance of failing to meet an obligation, especially a financial one.
  • The borrower was in default after missing three payments.
• Defaulter (n): A person or entity that defaults.
  • The bank sent notices to all defaulters.

Synonyms

• Fail to pay
• Fail to repay
• Be delinquent on (often used before a formal default is declared)

Related Phrases

• Go into default: To enter a state of having defaulted.
  • The country will go into default if the debt restructuring fails.

Verb

1. fail to pay up