What are the potential consequences of not handling debt effectively (e.g. late payments, default)?

If you don't handle debt effectively, there can be several potential consequences. Late payments and missed payments can result in late fees, penalty interest rates, and damage to your credit score. If you continue to miss payments, your account can be sent to a collection agency, which can further damage your credit score and result in legal action being taken against you. Defaulting on a loan or credit card can have serious consequences, including the possibility of wage garnishment, property liens, or legal judgments against you. It's important to handle debt effectively by making payments on time, communicating with creditors if you're having difficulty making payments, and seeking professional help if needed.