Card balance transfers: Proceed with caution

Rock-bottom rates on credit card balance transfers sound enticing, but make sure you read the fine print and never, ever, pay your bills late!

An offer of 4.99%, 3.99%, or even 0% interest for the life of the balance is usually accompanied by a sales letter informing you that this is your last opportunity to transfer a balance. Experts caution, though, that only good, responsible customers need apply.

There may be stipulations in the fine print you hadn't counted on. Some offers provide 0% for the life of the transfer, but you have to make two purchases per billing cycle. If there's no minimum dollar requirement for the purchases each month, some savvy consumers are going to the store and charging a few dollars twice a month on their credit card. Other offers tout a fixed rate only on the amount you move over from another card, but not on new purchases. And remember that variable rates look pretty good right now because of low interest rates, but in two or three years those rates probably will go up.

If your payment is late--even by one day--you could be socked with a high interest rate. Most credit cards have clauses that say if you are late on any other credit card, or even with a utility payment, the card issuer can increase your rate.

Financial counselors warn of another problem with low-rate deals--feeling deceptively relaxed. Paying 21% interest is depressing, but with a low rate, you may be lulled into a false sense of secuirity. The real challange is changing spending habits to reduce high debt loads.