Meaning Of Debt Default

To fail to do something such as pay a debt that you legally have to do.

Meaning of debt default. Meaning it may be considered defaulted after you ve missed multiple payments or just one depending on the terms you have with the creditor. A debt default on a secured loan means repossession of the collateral. To default on a debt definition in english dictionary to default on a debt meaning synonyms see also in default of judgment by default defaulter dealt.

In today s blog we re taking you through what it means if you have a default on a debt. The surest way to avoid default is to prevent budget deficits that lead to debt. What happens in the event of a debt default.

A default can occur when a borrower is unable to make timely payments misses payments or avoids or. The federal government must raise revenue through taxes or cut spending. What does a default on a debt mean.

When an individual company or sovereign nation borrows money there are usually legal obligations that have been set out in a debt contract. But now that the debt is more than 100 of gross domestic product it will be difficult to cut spending enough to reduce the debt and risk of default. Default is the failure to repay a debt including interest or principal on a loan or security.

The term default should be distinguished from the terms insolvency illiquidity and bankruptcy. Definition of debt default what is meant by the term debt default. For instance a company may borrow money via a debt offering.

For each organization the default. A debtor has passed the payment deadline on a debt they were due to pay. Enrich your vocabulary with the english definition dictionary.