Everyone goes bankrupt. The end of commerce. The lights go out. Complete descent into barter and barbarism. Universal default.
Actually, the term isn't as dire as all that. However, it can lead to higher interest rates on your credit cards, if you're not careful about payments. So...almost as bad.
The basic concept of universal default is that one credit card company will react to things that happen at other lenders. So if you're late with a payment to one place, every place could increase your interest rates.
You have a credit card and an outstanding loan for your scooter. You fall behind on your scooter loan and they report it to the credit bureaus. You've kept up with your credit card payments, despite your troubles with the scooter loan. However, it doesn't really do you any good. The credit card has a universal default clause. Since you were late with the scooter loan, they have the right to jack up your interest rates. Default in any place is functionally the same as a default on your credit card, as far as rates go, even if you're diligent about payments. Universal default.
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Finance: What is a 1099?0 Views
Finance, a la shmoop. What is a 1099? Well it's a tax form for the rest of us the
non fully employed, the non recipients of crappy health care and benefit plans, the [Man looks shocked at his medical bill]
non recipients of fancy corporate business cards those of us who choose to [Business card for Brett Corporate]
go it on our own as consultants, contractors, day laborers and
independents who self employ under the yoke of many masters trying to make our [A contractors diary]
own little way in the world, yeah. Corporations who hire contractors in
whatever form, must deliver to those contractors a form 1099 which outlines [Corporation giving out 1099s to contractors]
and stipulates the details of the job performed for the contractee. That 1099
is a direct conduit to the IRS holding out their arm to shake your hand and [The form 1099s are sent to the IRS]
then turning it 90 degrees to the right. [IRS's hand out expecting something]
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