Not addressing debts in a timely manner can have severe consequences:u003cbru003e1. u003cstrongu003eDamaged Credit Scoreu003c/strongu003e: This is the most immediate consequence. A low credit score can affect your ability to secure loans, housing, or even employment.u003cbru003e2. u003cstrongu003eIncreased Financial Burdenu003c/strongu003e: Unpaid debts can accumulate interest, making them even harder to pay off in the future.u003cbru003e3. u003cstrongu003eLegal Repercussionsu003c/strongu003e: Creditors can take legal action against non-payers. This could result in wage garnishments or property seizures.u003cbru003e4. u003cstrongu003eEmotional and Mental Strainu003c/strongu003e: The constant stress from unpaid debts can lead to anxiety, depression, and other health issues.u003cbru003e5. u003cstrongu003eLoss of Collateralu003c/strongu003e: If you have secured loans, failure to pay might mean losing your home, car, or other valuable assets.u003cbru003e6. u003cstrongu003eLimited Access to Future Creditsu003c/strongu003e: With a tarnished credit history, securing future credits or loans becomes challenging.u003cbru003eIt's crucial to address debts as early as possible to avoid these consequences. Even if you're struggling, reaching out to creditors and explaining your situation can sometimes mitigate some of these outcomes.