[Hey, y'all! Call today and git yer slice-a that American bailout pie!]Glamour Magazine's Little Miss Fortune (subscribe at Glamour.com) just posted some information on how to do this.
You can also ask credit card companies to lower your interest rate. Sometimes it works, and sometimes it doesn't. But it doesn't hurt anything to try. I've done it a couple of times and had my rates cut in half. Just call and say you want to cancel the card. (You'll still have to pay the balance, but you won't be able to make new purchases again.) The card company will ask if there is anything they can do to keep you as a customer, and sometimes they will even make you an offer.
Beware: Sometimes they will tell you shady, semi-threatening things like, "If you cancel your card, it will hurt your credit score." This may or may not be true. But most likely, it's in your best interest to take a small hit to your score and lower your debt considerably. Also, the warnings are sometimes utter BS. I canceled several of my cards before I applied for a home loan (while the card companies wailed and moaned that I was ruining my credit by canceling my accounts with them), and my credit score went UP to a very high level so that I was able to purchase my home. I'm no expert on how credit scores and other financial hoo-nannery is calculated, but I am fully aware that lenders are in the business of squeezing all the cash possible out of borrowers. It is not in their best interest to be honest and forthright with you.
[Like, don't you WANT me to keep shopping?]So offer a lump sum for a lower overall balance. Threaten your credit card companies that you will never use their cards again if you don't get a lower rate immediately. Sure, you might have brought debt upon yourself. (I'll admit, I threw a few plane tickets to visit the in-laws on a credit card years ago, figuring I'd be making big bucks someday and be able to pay it off...) But don't tell yourself, "I deserve this" and allow predatory companies to take maximum advantage of your financial missteps. Negotiate, settle, and move forward making better spending choices in the future. It will benefit you, your family, AND the economy if you can get your finances in order.
[You tell 'em, honey!]I'm calling AmEx today! My 0% introductory rate for 18 months ran out, and I've been hit with a rate near 12%. Did I bring this debt upon myself? Absolutely. Did I know the zero-interest deal was temporary? You bet. I'll be paying off my balance, plus interest. But I think a 12% rate is absurd and, I hope, negotiable. Wish me luck.
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Success! I called American Express and asked for a lower rate. No screaming, begging, or any kind of rudeness involved. The customer service agent simply looked up all the available products on his computer and switched my account to a card with a lower rate and a different reward system (which I don't care about anyway). I reduced a 12% rate to 8% interest with a five-minute call. Not bad!
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