Other issuers that promise to hold steady on balance transfer rates include Bank of America. One offer for a Bank of America Gold Card boasts an 8.9 percent fixed APR on transferred balances and the same for new purchases for six months.

Keep caution by your side
As nice as all these deals seem on the surface, there's plenty to be wary about. The penalties on these low-rate cards are often severe, some companies charge a "transaction fee" for the privilege of transferring a balance to their card.

Several issuers offering low rates on balance transfer charge fees of 3 to 5 percent when you accept their offer. A 4 percent fee on a $1,000 balance would cost $40. Some issuers cap fees at $35 to $50. Most issuers charge these fees as soon as a balance is transferred onto a card.

Keep your eyes peeled for transaction fees when weighing different balance transfer offers. Avoid cards that charge hefty fees.

"It's really very tricky. They have all these sneaky conditions," says Howard Strong, author of What Every Credit Card User Needs to Know. "You need to be extremely cautious."

Bringing over your balance
Once you've settled on a card offer, you're ready to start the actual balance transfer process. This Bankrate.com worksheet will walk you through the steps.

It's important to continue to make minimum payments on your old card while waiting for a balance transfer to take effect, which could take four weeks.

Be sure to close off old credit lines. Otherwise, you may be tempted to charge away on your old cards. Darrin Sandoval, director of operations at Consumer Credit Counseling Service of Greater Denver, sees this all the time.

"They may transfer a large balance to a card with a low rate on balance transfers but they continue to use the old card," Sandoval says. "Soon both cards have large balances on them."

It's also important to realize that not everyone qualifies for the rock-bottom interest rate promised in big bold print. The teeny, tiny print near the end of the credit card offer explains this.

"It's the old story. The big print giveth and the small print taketh away," Strong says.

So even though the offer might say 1.9 percent interest rate on balance transfers, you may qualify for a 10.99 percent rate.

Getting your transfer's worth
Let's say you land a super-low interest card deal and successfully transfer a hefty balance onto it. And you remember to close off your old credit line. So far, so good.

For the next six months or so, your credit card payments will be cut in half. With the money you save you may finally be able to build up a small emergency fund so you'll have some cash on hand should the worst happen and you lose your job.

As nice as having some breathing room in your budget may be, you're not done yet.

"That's only the first step," Sandoval says.

The best way to free up more cash for the long haul is to eliminate credit card debt. You'll need to continue to pay as much as you can on those credit cards.

You'll also want to adjust your spending habits to avoid running up huge credit card balances in the future. It's all a matter of learning to live within your means.

Sandoval advises people to limit credit card charges to emergencies and for purchases that can be paid off in 90 days.

-- Posted: March 16, 2003