NEW YORK — Credit card defaults are on the rise for Americans, reaching the highest level in 14 years. U.S. credit card defaults jumped to a record $46 billion last year from January through September, according to the Financial Times, citing data analyzed by BankRegData.

With high levels of credit card debt and high inflation, many consumers have found themselves unable to cover monthly payments, leading some to default.

A borrower goes into default when they miss credit card payments for over 180 days, roughly six months. When there is a failure to pay over such a long period, banks generally take this as a sign that a borrower won’t pay the debt anymore, said Matt Sotir, financial adviser with Equitable Advisors based in New Hampshire.

“These are debts that have a lot of impact, and I think sometimes people don’t realize that if they missed (a payment), how bad it could be for them in other areas,” Sotir said.

Several levels of consequences result when credit card payments are not made. It begins with late fees, higher interest rates and a potentially lower credit score. If a borrower doesn’t pay for 30 days, the bank considers the credit card “delinquent” and the borrower’s credit scores can be damaged further.

When a borrower fails to make a payment for roughly six months, the bank considers the credit card in default, which means they will close your account and refer you to a collection agency, said Chip Lupo, writer at WalletHub.

“That’s where you’re going to really have trouble obtaining future credit for a while,” Lupo said.

When a collection agency assumes your debt, they will reach out via phone, email and mail to encourage you to pay up. Eventually, if not paid, the collection agency may take legal action against the borrower.

For those who default on a credit card, their focus should shift to being proactive, Sotir recommended. Whether it’s reaching out to your bank or working with a financial adviser, the quicker you start looking for viable solutions the more consequences you will be able to avoid.

“I’ve seen it over the years, when someone gets in trouble, it’s easy to cocoon and not want to deal with it,” he said.

Sotir recommends that you reach out to your credit card company to negotiate the debt since it’s in the bank’s best interest to help you catch up. If your account goes to a collections agency, find out if they can offer a payment plan or seek help from a nonprofit credit counseling organization or financial adviser.

Of course, avoiding default is the preferred course of action.

It’s best if you pay your credit card in full every month, but if that is not possible, getting to at least the minimum monthly payment each month can help you avoid falling further into debt, said Rikard Bandebo, chief economist at VantageScore, a credit modeling company.

“Do whatever you can not to get to the next stage. If you’re 30 days late, try to avoid getting to 60 days and absolutely try to do everything you can to avoid getting default,” he said.

If you are having trouble making payments on your credit card, Bandebo recommends reaching out to your bank and ask if you can be placed in a payment plan.

Other alternatives include reaching out to a credit counseling organization or transferring your credit card debt to a 0% interest card, although that typically comes with a fee.

Defaulting on a credit card will have serious consequences on your credit score, and that will limit how much you will be able to borrow in the future. If you don’t pay your bill for a month, your credit score will likely fall 60 to 100 points, Bandebo said. And a default stays on your credit report for seven years.

Bandebo often uses the analogy of credit scores being similar to reputation: It takes a long time to build up but one mistake to set you back for a long time.

“There’s not miracle solutions that once you’ve missed a payment, or you’ve gone to default, to simply go back to where you were. You can’t just flip a switch,” he said.