Towards the end of my college career (last Spring), I was short on cash. Despite the fact that I tried to remain on top of my hefty cc payments, I fell behind on one card a few times. As a result, the card is canceled, and the finance charge, which used to be 14%, is now 28%. (I think that's whay happened, although I was never notified. The rate was simply higher when I looked on day. I would have called and begged forgiveness, but had no money to give them).

As I stands now, I have five cards. Three are good standing accounts. One is cancelled, with a 14% interest rate. The last, which also holds a large balance, is at 28%. I currently make about double my monthly expenses, so my payments have become regular and sizable.

How should I handle that 28% card? I don't want to pay it off yet, because the card is cancelled. As I have no savings, I simply send as much money as I can to cards that are still open, and then charge my transactions for the rest of the month. Any money I send to this closed account will not be available in case of an emergency (car, medical, whatever).

Is there any chance they may lower the rate if I ask nicely? Should I just grin and bear it? Any strategy I should take?

Thanks for your help.

-Dave