What does defaulted mean?

Pronunciation

/diˈfɔltɪd/ 🔊

Part of Speech

Verb or Noun

Definition

To fail to meet a financial obligation, such as a debt or payment, or to fail to perform an action or duty. A state of being in default, often resulting in financial or legal consequences.

Examples

• The company defaulted on its loan payment.
• She defaulted on her credit card debt.

Synonyms

• Miss a payment
• Fail to pay
• Default on

Etymology

The term “default” originates from the Latin “defalere,” meaning “to fall short.” In the 15th century, the term referred to the failure to meet an obligation or expectation. Over time, the meaning expanded to include financial and legal contexts.

Usage Notes

When using the term “default,” it’s essential to understand the context and connotations. In financial contexts, “default” implies a serious failure to meet obligations, often with severe consequences. In other contexts, “default” might imply a less severe failure or omission.

Additional Information

Defaulting on a financial obligation can have significant consequences, including damage to credit scores, legal action, and financial ruin. It’s crucial to prioritize debt management and financial planning to avoid defaulting. Defaulting can also apply to non-financial contexts, such as failing to meet a deadline or obligation. Understanding the implications of defaulting is essential in both personal and professional settings.

Cultural References

In popular culture, defaulting is often portrayed as a serious mistake or financial blunder. Examples can be found in films, literature, and music, where characters struggle with debt and defaulting.

Idiomatic Expressions or Phrases

A default situation can also be referred to as a “default mode,” implying a state of being stuck or unable to make progress. In loan negotiations, a “default interest rate” may be applied, resulting in higher interest rates for late payments.

Related Words or Phrases

Words and phrases related to defaulting include “delinquent,” “in arrears,” and ” default risk.” These terms are often used in financial and legal contexts to describe the state of being in default.

Collocations

Common collocations with “default” include “default payment,” “default interest,” and “default judgment.”

Frequency of Use

The term “default” is frequently used in financial and legal contexts, particularly in the United States and Europe. The frequency of use has increased in recent years due to the global financial crisis and the rising levels of consumer debt.

Common Misspellings

• Defalted
• Deffault
• Defaulter