Default (finance)
Etymology
From Old French defaute, "a fault, failing," from Vulgar Latin defallere, "to be lacking, fail" (de-, "away," plus fallere, "to deceive, fall short"). The core idea is a failure or absence — here, the absence of the payment that was promised.
noun · /di-FAWLT/
The failure to meet a legal obligation to repay a debt, such as missing enough loan payments.
What it names
It marks the moment borrowing goes wrong in a way that has consequences — collateral can be seized, credit is damaged, and lenders take losses.
Example
When the company went into default on its bonds, investors braced for losses.
Related idea
Default is the trigger; collateral is what a lender can seize once it occurs.
noun · /di-FAWLT/
The preset option a system uses automatically unless you choose otherwise; more broadly, what happens in the absence of any other action.
What it names
factory settings, the option already selected
Example
The app saves to the cloud by default.
Related idea
Feeds directly into default-bias — the quiet pull of sticking with whatever is preselected.