(out Friday, May 23 on Hulu) proved

Here’s what you should know about credit card defaults.There are several levels of consequences 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,” said Lupo.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.

The first step is to be proactive, recommended Sotir. Whether it’s reaching out to your bank or working with a financial advisor, 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,” said Sotir

Sotir and Bandebo recommend 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 non-profit credit counseling organization or financial advisor.

in full every month, but if that is not possible, gettting 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.Many people fear getting in trouble with the IRS if they make a mistake. To avoid common errors:

— Double check your name on your Social Security card.When working with clients, O’Saben always asks them to bring their Social Security card to double-check their number and their legal name, which can change after marriage, for example.

“You may have changed your name but you didn’t change it with Social Security,” O’Saben said. “If the Social Security number doesn’t match the first four letters of the last name, the return will be rejected and that will delay processing.”— Search for tax statements if you’ve opted out of paper mail.