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Default means failing to make required payments on a loan or debt, as agreed upon with the lender.
In Depth
When you default, you have not fulfilled your obligation to pay back money you borrowed, such as a mortgage, car loan, or credit card. This can happen after a certain number of missed payments, as defined in your loan agreement. Defaulting can lead to severe penalties, including damage to your credit score, repossession of assets, and legal action from lenders.
Example
If John misses several car payments in a row, his auto loan will go into default, and the lender could repossess his car.