July 14, 2003: 6:35 PM EDT
By Jeanne Sahadi, CNN/Money Senior Staff Writer

Chat 'n save: Paying high credit card fees? Too much on your car insurance? Cut costs by picking up the phone.

NEW YORK (CNN/Money) - Whether it's your credit cards, your car or your home, you now sit atop a pricey pile of I.O.U.s.

You can't schmooze your way out of paying all that you owe, but you can trim your debt and expenses with as little as a phone call if you're smart.

And by "smart," think persistent, disciplined and organized.

Credit card debt: Chip away at fees, rates

Annual fees, late fees, high interest rates - all can be banished from your credit card bill if you speak to your card issuer and insist they be removed.

At least that's been the experience of Scott Bilker, author of "Talk Your Way Out of Credit Card Debt" and founder of DebtSmart.com. In his book, Bilker details 52 recorded phone conversations he had with credit card companies and the money he saved as a result.

You're in the best position to get the lowest-cost deals, Bilker said, when you're:

a) persistent -- if the rep can't help, ask to speak to the supervisor

b) have competing offers from other banks

c) are willing to take your business elsewhere

"You have to spank their bottom lines when they're bad," Bilker said. "I always make banks compete for my business."

But they may not compete very hard if you don't have reasonably good credit and a history of paying all your bills on time.

When it comes to late fees, Bilker found most banks will waive first-time late fees if you call. If you've been late a few times, however, you may have to persuade the lender that you'll stop using the card if the fees aren't waived.

You're in the best position to negotiate a great deal when the bank calls you, Bilker said.

In one instance, dissatisfied with what his bank was charging him, he chose to transfer his balance to another bank's credit card and close his account. A month later, his original bank called him, offered to waive the annual fee, increase his credit limit and lower the interest rate from the level he'd been paying before he transferred his balance.

Indeed, since credit card companies are eager to retain as many profitable customers as possible, "the last thing they want the customer to do is walk," said credit card and marketing expert Jim Accomando, president of Accomando Consulting. "The banks will go out of their way to satisfy the customer's request within reason." But customers who call frequently, are chronically late and are bad credit risks are not customers banks will lobby to please, he noted.

One credit card company, Discover Financial Services, says it will do what it can to meet its customers' requests. "We're willing to work with our card members on a case-by-case basis," said company spokeswoman Beth Metzler. "Our main concern is to keep our customers happy."

Car leasing: Stay sharp on damages and residual value

If you lease a car, there are at least a couple of ways to trim costs after you've signed on the dotted line, people familiar with leasing say.

Your lease should include a list of what the leasing company considers to be excess wear and tear -- in other words, damages for which you must pay if they're found after you turn in the car.

Even if you agree that your car has damages, however, you can contest the lender's estimate of repair costs if you get the car appraised and get a lower estimate for repairs.

Likewise, if you want to buy your car when the lease ends, you may be able to negotiate the residual value, which is the amount the lender estimated your car would be worth after the lease period ends. This is the case if you find that the market value for your car is less than the residual value. To find the market value of your, you can go to Website like Nadaguides.com, Kelley Blue Book's site at KBB.com or Carsdirect.com.

Chris Strickfaden of Manhattan Beach, Calif., knows firsthand how negotiable residual values can be. He wanted to buy the Infiniti QX4 he'd been driving. Its residual value was $19,300 and the market value was about $17,500. Just by asking, Strickfaden was offered a 10 percent discount and 10 days to think about it. He came back with a flat offer of $15,000 and the leasing company said the best they could do was $15,600, nearly 20 percent below the residual value. What's more, the company offered him an auto loan to finance that purchase at 1.9 percent.

Insurance: Know your discounts

When it comes to discounts on your auto and home insurance, don't expect them to call you. "You always have to ask," said Howard Dvorkin, president of Consolidated Credit Counseling Services and self-professed cheapskate.

For instance, let your insurer know if you've put in a car alarm. High-tech ones will qualify you for a discount of up to 20 percent, said Alejandra Soto, a spokeswoman for the Insurance Information Institute. And a high-tech home security system (especially those that automatically alert the police) can get you up to a 40 percent discount on your home policies.

Or if you find you're driving less than 8,500 miles a year, you may qualify for a discount of between 5 percent and 10 percent, Soto said. But don't lie. Should you get in an accident and the company finds out you've been driving more, they can deny your claim or even cancel your coverage, she said.

If you're retired and/or have turned 50 or 55, you also may qualify for a discount of 5 percent to 10 percent on your auto insurance and up to 20 percent on your home insurance, Soto noted.

Debt to be: Have a little chat with yourself

The best way to keep your debt from growing, of course, is to curb your spending.

So next time you want something you know you don't need, why not picture your most cherished dream - perhaps that perfect home or a retirement that never involves your uttering the words, "And would you like fries with that?" Then imagine that dream is a painting and the debt you're about to incur is a lit match at the corner of the canvas.

Too alarmist for your tastes? Then why not consider how much you might save if you improve your credit score - key factors to boosting a score include paying on time, keeping credit card balances low and paying off debt rather than constantly moving it around.

In fact, if you want a mortgage on that perfect home, why not take a look at MyFICO.com's loan savings calculator. Based on July 7 interest rates, for example, a FICO score of 699 would cost you an extra $45,000 in interest on a 30-year fixed-rate $300,000 mortgage than if your score were 720. The lower your score, the more you'll pay.

Now, ask yourself: Do you really need another cashmere sweater or that cool cellphone with the built-in digital camera?