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Budgeting improperly, or in discord with the amount of things needed to paid in a particular month or year, can lead to extended debt and creating a sort of poverty that could have been avoided with a better budget. In addition, if loan repayment or credit card repayment has not been budgeted for, those loans could default and objects like cars or homes could be taken away, and a credit card that goes unpaid wreaks havoc with a credit score. Similarly, if rent is not budgeted for, the landlord has grounds for eviction. Improper budgeting has many detrimental effects and is best avoided.

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