Default
Also called: defaulted, in default
When you stop paying a loan for a long time and break the deal you made. It can badly hurt your credit.
Example
Someone stops paying a car loan for months, and the lender takes the car back.
Why it matters
If you can't pay, call the lender early. Many have hardship plans.
Want help with this?
Join Guapify free to ask questions about Default, use free Money Tools and learn with people who get it.
Join Guapify freeOne tap with Google. No credit card.
Members get more
Keep learning
More in Loans
APR
Short for Annual Percentage Rate. It is the total yearly cost of a loan or credit card, with interest and some fees in one number.
Buy Now, Pay Later (BNPL)
A way to split a purchase into a few smaller payments, like 4 payments every two weeks. It feels easy, but missed payments can bring fees.
Down Payment
The cash you pay up front when you buy something big, like a house or car. The rest you pay with a loan.
Interest
The extra money you pay to borrow money. It also means the extra money a bank pays you when you save.
For learning, not personal financial, tax or legal advice. Rules and limits can change each year, so check official sources (like IRS.gov or your plan's documents) or a trusted pro before big decisions.