Does the latest balance transfer credit card offer you received in the mail tempt you? While they may sound like they're heaven-sent - the fine print may be hiding the real terms and conditions of the deal. What most folks don't realize is that transferring balances from higher interest credit cards to low or 0% APR cards can be tricky if you don't know what you're doing.

Common Balance Transfer Mistakes

1. Not Taking Into Account the Initial Transfer Fee

The fee may be $50 or $75, but it can also be higher when calculated as a percentage of your balance. Even a 2% transfer fee can be huge if you owe $20,000.

Tip: Look for cards that have caps on fees, it's a good idea to consult a website that allows you to compare offers of different credit cards, like Creditorweb.com.

And don't transfer if the fees you pay are more than the interest you will save over the balance transfer period, which may only be 3 months.

2. Not Understanding the Interest Rate is Higher for Purchases and Cash Advances

These transactions rarely are given at your low interest rate, and may not even have a grace period meaning you start paying from day one.

3. Payment Allocation Terms May Surprise You

If you make purchases or cash advances, understand that when you send payments, they are going to be applied to your initial balance transfer balance, so you will be paying interest on your recent purchases made with the card until that original balance is wiped out - accruing high interest along the way.

4. Low Rate Expiration Can Creep Up on You

If you don't have a plan for realistically paying off your entire balance within the stated low-interest period, expect to see your interest rate skyrocket after only a couple months.