What are the potential consequences of not managing my credit properly?

Not managing credit properly can have several potential consequences. Here are a few examples:

1. Damaged credit score: Late payments, defaulting on loans, and maxing out credit cards can all harm your credit score, making it difficult to obtain loans or credit cards in the future.

2. Higher interest rates: If you have a low credit score, you may be charged higher interest rates on loans and credit cards, increasing the cost of borrowing money.

3. Limited financial options: With a low credit score, you may have limited access to financial products and services, including loans, credit cards, and even apartment rentals.

4. Difficulty getting approved for loans: Lenders may view you as a risky borrower if you have a low credit score, making it difficult to get approved for loans or credit cards.

5. Collection agencies: Failure to make timely payments can result in collection agencies contacting you and negatively impacting your credit score.