What is often the consequence of not managing debts effectively?

Managing debts effectively is crucial for maintaining financial health and ensuring that one has access to potential credit resources when needed. When debts are not managed effectively, it can lead to a lack of available credit. This situation may arise due to several reasons, such as high credit utilization ratios, missed payments, or accumulating unpaid debts, all of which can negatively affect the borrower’s creditworthiness.

When lenders evaluate a person's credit history, they take into account factors like payment history, amounts owed, and the length of credit history. Failing to manage debts often results in a poor credit score, which can lead to potential lenders being hesitant to extend new credit. Additionally, individuals may find it difficult to qualify for loans or may only be offered loans with unfavorable terms, limiting their financial flexibility and opportunities.

In contrast, the other options do not accurately depict the consequences of poor debt management. Improved credit score, lower interest rates, and increased spending opportunities typically require responsible debt handling and consistent repayment practices. Therefore, the consequence of not managing debts effectively aligns with the idea that it can result in a lack of available credit, impacting overall financial well-being.