As a certified public accountant, Michael J. Smeriglio guides individuals and families.

When reorganizing credit card debt, many debtors begin by transferring debt from an account with a high-interest rate to an account with a lower rate. Asking the account issuer whether the low-interest rate will last for the duration of the debt is important because some special promotions grant low-interest rates on transfers for only a short time and then raise the rate. If the long-term interest rate is favorable, it may save the debtor a significant amount.

When considering the transfer of funds from one account to another, attempting to negotiate a lower interest rate may be worthwhile. Many credit card companies find themselves motivated to offer better rates if they would lose a customer to a more competitive company. Once all interest rates are set, the debtor can begin to pay off the accounts with highest interest rates.