Defaulted

The term 'defaulted' refers to the failure to fulfill a financial obligation, such as failing to make required payments on a loan or failing to meet the terms of a contract. It indicates a breach of responsibility that can lead to legal actions, financial penalties, and damage to credit ratings.

Defaulted meaning with examples

• After struggling to make mortgage payments for several months, Sarah defaulted, resulting in her home being put up for foreclosure. This financial strain made it difficult for her to find another affordable living situation, and she became overwhelmed by the consequences of her credit score dropping significantly.
• The company defaulted on its bonds due to declining revenues and an inability to secure new financing. Investors were left scrambling to recover their funds, as the firm announced severe restructuring efforts, which highlighted the extensive risks associated with corporate bond investments.
• He defaulted on his student loans after graduation when his job didn't pay enough to cover the repayments. Despite his hopes for career advancement, he found that the burden of debt stifled his ability to invest in further education or buy a home.
• The city defaulted on its debt obligations, leaving residents anxious about potential cuts to essential services like schools and public safety. The decision, made due to budget shortfalls, marked the first time in decades that the municipality faced such a dire financial crisis.
• When the small business defaulted on its credit line, it sent shockwaves through the local economy. Vendors and suppliers were not only unpaid but also worried about the ripple effects of this failure on their own financial stability and community relations.