What does default mean in simple terms?

Definition of default (Entry 1 of 2) 1 : failure to do something required by duty or law : neglect. 2 archaic : fault. 3 economics : a failure to pay financial debts was in default on her loan mortgage defaults.

What is default used for?

As a verb, default most commonly means to fail to make a payment, especially on a loan. It is also commonly used to refer to original, preset options, such as the default settings of a device or app.

What happens when you default?

When a loan defaults, it is sent to a debt collection agency whose job is to contact the borrower and receive the unpaid funds. Defaulting will drastically reduce your credit score, impact your ability to receive future credit, and can lead to the seizure of personal property.

What does it mean if a company defaults?

Generally, default refers to a company or individual who fails to make payments or interest payments on time. It typically applies to loans taken from a bank or provider and can lead to a declaration of bankruptcy or loss of assets (collateral) that will be used to pay off debts.

What does default mean on your phone?

When you tap an action in Android, a specific application always opens; that application is called the default. This can come into play when you have more than one application installed that serves the same purpose.

What does default mean in an app?

When you tap an action in Android, a specific application always opens; that application is called the default. This can come into play when you have more than one application installed that serves the same purpose. For example, you might have both the Chrome and Firefox web browsers installed.

What does default mean on the computer?

In computer technology, a default (noun, pronounced dee-FAWLT ) is a predesigned value or setting that is used by a computer program when a value or setting is not specified by the program user. The program is said to default when it uses a default value or setting.

What does default on credit mean?

A default is a financial term, used when a credit agreement has been broken. If you’re unable to make payments or you don’t pay the right amount, your creditor may send you a default notice. If the default is applied, it could affect your credit file.

How do I get my mortgage out of default?

One way to get out of default is to repay the defaulted loan in full, but that’s not a practical option for most borrowers. The two main ways to get out of default are loan rehabilitation and loan consolidation. While loan rehabilitation takes several months to complete, you can quickly apply for loan consolidation.

What happens to a company when it defaults?

When a company defaults on this kind of debt, the lender can take possession of the property or equipment offered as security for the debt. In some cases, the lender is limited to the secured assets, and if the obligation is greater than the secured value, the lender must take the loss.

What does default mean in banking?

Default is the failure to repay a debt, including interest or principal, on a loan or security. A default can occur when a borrower is unable to make timely payments, misses payments, or avoids or stops making payments.