Overwhelmed by Credit Card Debt? Bargain with the credit card company.

If you’ve been a good customer with a clean payment history and a good credit score, you have a marketing advantage you can use. First, do your homework and find out what other card companies charge in interest for those in your credit situation (a neat calculator at credit.com estimates your credit score based on data you provide, and then matches up your score with potential credit card offers). Then call the bank and request a competitive rate. The bank knows it will cost more to replace you than to lower your interest rate, so you have a fair chance that they will comply. If not, step it up a notch and ask to speak to a supervisor who has the authority to make a change. If they still won’t budge, you may be able to switch to a new card from another company and still get the rate you want. Note that getting the lower rate may not directly translate to paying off your cards because your minimum payment will likely go down when your interest rate is lowered. Be sure to use the finance charge savings to make more than the minimum payments each month.

If you made a late payment and the card company added late fees or jacked up the rate, call them right away and ask them to reverse the fees and reset your rate. If you have a good track record, they will often be cooperative as a one time courtesy. If you made a late payment at least six months ago and are stuck with a high interest rate, you’ve let enough time go by for them to reconsider restoring your original rate.

If the card company sends you a notice that they are arbitrarily changing your rate, the fine print in your contract may say that you have the right to refuse the change. If so, notify the credit card company of your wishes. They will allow you to keep your original rate, but they will close the card and not let you use it again while you’re paying off the balance.

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