Default
If you are in default, this means that you haven’t made a payment to one of your creditors. This situation should be avoided if at all possible since when you are in default then a note of this is kept in your credit record, whch in turn means if you want to get a loan in the future it will be on less favourable terms.
All the terms and conditions of your loan payments are set out in your contract with your creditors, so there is no excuse for unnecessarily allowing yourself to default on a payment. The best option after defaulting is to make the payment as soon as possible to clear your arrears.
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