Default
To fail to do something, such as pay a debt, that you legally have to do [Cambridge Dictionary].
As a setting, the default is automatic. The default can also refer to the absence of other parameters. Default is also non-payment of a financial obligation. An option that is selected automatically unless an alternative is specified [Vocabulary. com].
Default is the failure to make required interest or principal repayments on a debt, whether that debt is a loan or a security. Individuals, businesses, and even countries can default on their debt obligations. Default risk is an essential consideration for creditors. A default can occur on secured debt, such as a mortgage loan secured by a house or a business loan secured by a company's assets. If a borrower fails to make timely payments, the loan could default, and the asset or collateral used to secure it would be in jeopardy. Similarly, a company unable to make required coupon payments on its bonds would be in default. When an individual, a business, or a country defaults on a debt, its lenders or investors may sue to recover the funds. Their recovery prospects will depend, in part, on whether the debt is secured or unsecured. Student loans are another type of unsecured debt. Defaulting on a student loan has the same consequences as failing to pay off a credit card, affecting your credit rating and future loan prospects. Those who default on federal student loans may also face wage garnishment. A default is a missed or multiple payment on money you borrowed. An example of a default would be not paying your credit card bill or your monthly mortgage payment [Investopedia].
Default. (2023). Cambridge Dictionary. Retrieved from: https://dictionary.cambridge.org/dictionary/english/default
Default. (2023). Vocabulary. Retrieved from: https://www.vocabulary.com/dictionary/default
Chen, J. (2022). Default: What It Means, What Happens When You Default, examples. Investopedia. Retrieved from: https://www.investopedia.com/terms/d/default2.asp