Default balance
Debt, arrears & collectionsThe amount recorded as outstanding when an account is defaulted.
Overview
The default balance is shown on your credit report at the time of default.
Interest or fees may continue separately depending on the lender.
Why it matters
- It affects what lenders see about your past debt.
- It can influence settlement discussions.
- It helps explain the size of the default.
FAQs
Can the default balance change later?
It can update if the lender corrects the record or records a settlement.
Does paying the debt remove the default balance?
The default remains but may show as settled or satisfied.
Related terms
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