Default >> Back to glossary
If you have missed even one payment on a loan or debt obligation to which there was no permission to allow for this in your finance contract, then you could be technically classed as in default of your legal financial obligation. Actually if you do not abide by every single term of your contract then by law you could be found to be in default. It doesn't matter whether you intentionally planned on not fulfilling the obligations that you agreed to or not, you are still guilty of defaulting when you don't fulfill all the terms outlined in the contract you signed. Once this happens you have left the doors open for your creditors to take whatever action that the law allows them to do in connection to collecting what is owed to them.
There could be specific terms within your contract that outlines what actions your creditors may take. They may indicate that they will charge a fine for the first default, or they could stipulate that they will demand full payment of the money owed immediately. Although specific default terms may be outlined they don't have to be in order for the organizations that you owe money to, to take whatever legal actions they want to collect.
Being in default is not an uncommon occurrence for individuals that are in debt trouble. Unfortunately it is an ongoing circumstance for many. Some people who are not able to meet their debt obligations may make their payments but are continuously late. Others manage to just make the interest payments and can do nothing about the principal. Then there are a great many that just can't make the payments at all.
Being in default is the end result of your financial circumstance. We here at DebtCafe USA, have directed individuals with these problems to the right debt experts on an ongoing basis. Although it may be an embarrassing situation for you to be in it is also an understandable one. Unfortunately nobody knows the future, and you may be financially secure one moment then in big money trouble the next. This can all change though once you have filled in our request for a free consultation or quote form here so we can enlighten you as to how default no longer has to be a circumstance or term that you have to deal with again.
