“Zero percent interest for a year!” “No interest on balance transfers for six months!”_ These types of credit card offers can sound appealing, especially if you are carrying hefty balances on your existing credit cards with 19%, 24%, or even higher interest rates. However, don’t be lured in by these types of teaser rates and promotions; chances are, you’ll just find yourself trapped in the debt cycle with your new credit card company after the promotional offer expires, owing to an even bigger outstanding balance.

Details Are in the Fine Print

Teaser rates sound great. Unfortunately, many people don’t read the fine print with the offer. If you get a zero percent or low introductory rate but have to pay annual or even monthly fees just for the privilege of getting the credit card, it’s not such a great deal. You could also lose your promotional interest rate early if you make a late payment on the new card, in addition to paying late fees. The teaser rate also might be on either new purchases or balance transfers, but not both. In that case, your payments will likely go to pay down the lowest interest rate debt first, meaning you’re paying more interest over time than you thought you would.

Not Closing Existing Cards After Balance Transfers

Another trap people can find themselves in is taking advantage of a teaser rate on a new card and transferring your balance, but not closing the old credit card. Many consumers find themselves in this situation and end up accumulating a sizeable balance again on the old card. Now, instead of paying down one credit card balance, they’re paying two (or three, or four…). It’s easy to see how this can snowball into a situation where you have more credit card debt than you can manage.

Beware Rewards and Other Incentives

Credit card companies also like to lure in consumers by offering airline miles, cash back on purchases or balance transfers, or other incentives for getting a new card or transferring balances from existing cards. However, those offers may not be so attractive when you calculate what they’re really costing you over time. Balance transfer fees, high-interest rates, annual fees, late fees, and more can all add up to a costly mistake. If you’ve fallen for teaser credit card traps, help is available. At DebtUSA, we work with consumers every day, helping them get out of debt.