It looks great, a credit card company has just sent you a special offer: "Transfer Balances From Other Cards And Receive a 2.99% Interest Rate For 6 Months" or sometimes even until the transfers are paid off. Sometimes the rate is even 0%. How can they afford to do that? 1, transfer fees 2. If are late on a payment the interest rates jumps much higher.....forever 3. Your entire monthly payment goes towards the portion of your balance with the lowest interest rate. If you have a card with a $5000 balance at 12.99% and you transfer a $2000 balance from another card at 2.99% ; nothing will be paid on the $5000 until the $2000 is fully paid. That nice low interest rate and lower monthly payments can be deceiving. By the time you pay off the $2000, That $5000 balance has grown to the range of $7000. The offers can be a great advantage if you transfer a large amount to a low % card that has no, or a very low balance.