C1nounmoneybusiness
US/dɪˈfɔːlt/
UK/dɪˈfɔːlt/
failure to pay back a loan or to do something you legally agreed to do
In context
The company went into default after it missed three payments on its loan.
Many small borrowers are at risk of default if interest rates keep rising.
Under the contract, late delivery counts as a default and the buyer may cancel.
Words that go with default
noun + preposition
- default on a loanSeveral firms may default on their loans this year.
- in defaultThe borrower is in default and must repay at once.
- risk of defaultThe risk of default has increased since the recession.
noun + noun
- default rateThe default rate on mortgages is rising.
- credit defaultA credit default can damage your rating for years.
verb + noun
- avoid defaultThe government borrowed more money to avoid default.
Common mistakes
Incorrect:
The company defaulted its loan.Correct: The company defaulted on its loan.