Source: CBS2 Chicago
Interest rates on credit cards have sky-rocketed over the last couple of years, leaving card holders with mounting debt. As CBS 2 Consumer Reporter Dorothy Tucker reports, people have more power than they realize to get bills down to size.

Until recently, Rush Kittle felt powerless over the rising interest rates on his credit cards. Then he learned that banks are in the mood to bargain these days, so he simply picked up the phone and asked for a break. “I just flat said that I thought the interest rate was too high. And I’d like to get a lower interest rate, and… immediately the guy accommodated me,” he said. Experts say fierce competition is forcing card issuers to negotiate to keep their good customers. “The market is just saturated with credit cards and banks–the only way they’re going to get new customers is to steal them from other banks, and they know that. It costs them about $300 in marketing to get a good customer,” said Scott Bilker of DebtSmart.com.

Bilker, who has written a book on the subject, says you need to be persistent when you call. If the first person can’t help you, insist on speaking to a supervisor. “You can say, ‘look, I’ve spent all this money, I’ve paid on time, I’ve made you guys a lot of money. I want a better deal,’” He said. And to improve your odds, come prepared with options. Shop for cards with lower rates, and save those balance transfer offers you get in the mail. “You need a deal breaker,” Bilker said. “That’s what you’re going to do if the bank doesn’t reduce your rate. You’re either going to close your account, or transfer your balance.”

No bank is going to advertise that they’re willing to do this, so you have to take the initiative to make the call to lower your rates. Those with decent credit who pay on time and carry a balance have the best chance of getting their rates lowered.