default on payment

USAGE SUMMARY

The phrase "default on payment" is correct and usable in written English.
It is typically used in financial contexts to indicate that a borrower has failed to meet their payment obligations. Example: "If you default on payment, the lender may take legal action to recover the owed amount."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

4 human-written examples

The risk with corporate bonds, of course, is that the company behind them will go bust or simply default on payment.

The Guardian - Money

lost confidence in the "effectiveness, stability and predictability" of American political institutions because the Teapartistas showed that they were willing to cause our government to default on payment of Treasury bonds if they did not achieve their political goals — weakening the social safety net and protecting the rich from paying even one dollar more in taxes.

The New York Times

"There is a real risk that a company will default on payment obligations before it actually breaches its covenants," according to Ian Field, a partner of Allen & Overy, a law firm, in London.When the main "sponsor" or the biggest shareholder happens to be a private-equity fund, the terms of a loan sometimes allow the fund to repair breaches in a covenant by putting more money into the company.

The Economist

He proposing that the federal government simply default on payment it's obligated to make.

Huffington Post

Human-verified similar examples from authoritative sources

Similar Expressions

54 human-written examples

Loews Cineplex said on Aug. 25 that it might default on debt payments.

The New York Times

Otherwise, economists fear Argentina could default on payments on its $150 billion foreign debt.

The New York Times

(Such facilities frequently auction the contents of storage containers after renters default on payments).

The New York Times - Arts

An unsecured personal loan carries less risk if you default on payments.

The Guardian

Several years ago this led petrol companies to default on payments.

The Economist

When the US Federal Reserve starts to hike interest rates from June 2004 onwards, many fall into arrears and default on payments.

The Guardian - Business

Grenada is already in default on payments to private creditors; the next step would be for these payments to be suspended, before a full debt conference.

The Guardian

Expert writing Tips

Best practice

When discussing financial obligations, ensure clarity by specifying the type of payment (e.g., loan, debt, invoice) and the entity to whom the payment is owed. For instance, "The company may "default on payment" of its loan to the bank."

Common error

Avoid using "default on payment" as a direct synonym for bankruptcy. While defaulting on payments can lead to bankruptcy, it is a specific event indicating a failure to meet payment obligations, whereas bankruptcy is a legal process that encompasses a broader range of financial difficulties. Use "file for bankruptcy" when describing the legal procedure.

Linguistic Context

The phrase "default on payment" primarily functions as a verb phrase describing the action of failing to meet a financial obligation. Ludwig AI confirms this usage is standard in financial contexts. It is most frequently used when discussing loans, debts or any form of credit agreement.

Expression frequency: Uncommon

Frequent in

News & Media

75%

Formal & Business

25%

Science

0%

Less common in

Wiki

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "default on payment" is a grammatically correct term used to describe the failure to meet financial obligations, primarily in news and business contexts. Ludwig AI confirms its usage is standard. While not exceedingly common, it's found in reputable sources such as The New York Times and The Guardian. Related phrases include "fail to make payment" and "miss a payment". When using the phrase, specify the type of payment and entity involved for clarity. Avoid using it as a direct synonym for bankruptcy; instead, reserve it for the specific failure to make a payment.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

fail to make payment

This alternative directly states the failure to pay, simplifying the original phrase.

miss a payment

This is a more casual way to say that a payment was not made on time.

become delinquent on payment

This alternative suggests a developing pattern of missed or late payments.

be in arrears with payment

This phrase indicates that payments are overdue and accumulating.

cease payment

This option indicates a complete stop in the act of paying.

suspend payment

This suggests a temporary halt in payments, usually due to specific circumstances.

be unable to pay

This alternative focuses on the inability to fulfill the payment obligation.

fail to honor payment

This option emphasizes the failure to uphold the agreement to pay.

stop honoring payments

This option indicates to actively stop honoring payments.

renege on payment

This alternative implies a deliberate decision to not fulfill the payment agreement.

FAQs

What does it mean to "default on payment"?

To "default on payment" means failing to meet the financial obligations or terms of a loan, debt, or other agreement where regular payments are required. It indicates a breach of contract and can have legal and financial repercussions.

What are the consequences of "defaulting on payment"?

The consequences of "defaulting on payment" can include late fees, increased interest rates, damage to your credit score, collection efforts, lawsuits, and even asset seizure or foreclosure, depending on the type of debt.

What can I say instead of "default on payment"?

You can use alternatives like "fail to make payment", "miss a payment", or "be unable to pay" depending on the context.

How does "defaulting on payments" differ from bankruptcy?

"Defaulting on payments" is a specific event where you fail to meet your payment obligations, while bankruptcy is a legal process that can occur as a result of repeated defaults and overwhelming debt. Bankruptcy offers legal protection from creditors and a structured repayment plan or debt discharge.