Lynn Murphy turned to a credit counselor after she found herself buried under $20,000 in credit card debt.
Her introductory rate had expired and the interest had skyrocketed to almost 18%.
Lynn says, "We just had too much credit card debt."
Curtis Arnold of www.cardratings.com advises people on how to negotiate with credit card companies.
Arnold explains, "It can be a little intimidating, but educate yourself. Don't be intimidated. The issuers, it's in their vested interest to work out a payment plan for you."
Lynn qualified for the bank's hardship program and was able to bring her interest rate down to four-point-five percent.
Even if you're not in dire straits, Consumer Reports' Andrea Rock says negotiating with your credit card companies can really pay off.
And you can be your own advocate. Call the number on the back of your card and ask to speak to someone about reducing your interest rate.
Rock advises, "Be persistent. If the first person you talk to can't help, ask to speak to a supervisor or someone in the customer retention department."
Before you call, check your credit report at www.annualcredit report.com.
Rock says, "Depending on your credit rating, you could lower your rate to less than 8.5%, and these days, anything below 10% is pretty good."
Lynn's finance charges dropped from $290 to $84 a month. She'll be able to pay off her debt in just five years, as opposed to the 38 years it would have taken her.
Lynn says, "I did not realize that you could get the credit cards to go lower on their rates."
Once you get your credit card ratings, Consumer Reports says it's a good idea to find out what kind of interest rates you can expect to get from credit cards.
Go to www.cardtrak.com and under "current pricing" you'll find out if your score qualifies you for the prime rate, the super prime rate, or the sub-prime rate.