2 min read
Definition
A default is a breach of the loan agreement, most often by missing payments, though breaching a covenant can also trigger one. It lets the lender demand the full balance and pursue recovery, and it leaves a serious, lasting mark on the credit file.
How to avoid it
Default is almost always avoidable with headroom and early action. See how to avoid defaulting and, if a payment slips, missed a payment?
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