When her statement came, she immediately wrote out two checks: one for $157 to pay off that new purchase (she knew that new purchases were subject to 15.7 percent interest) and another check for the required $134 payment on the transferred balance. She was careful to enclose a note explaining how she wanted the two payments to be applied.

The company ignored her instructions and applied both checks to the low-interest big balance, leaving the $157 intact, and it grew like crazy at 15.7 percent.

Her question for me: "Don't we, as consumers, have a say over this, or are we at the mercy of whoever is processing the checks that day?"

My answer: "You have no say. You kissed those rights goodbye the day you signed that credit card application. It's in the fine print."

What the fine print says: "Payment Allocation: Your payment will be allocated in the manner the company deems appropriate, including applying your payment to transfer balances before purchases and cash advance balances."

That $157 purchase will accrue 15.7 percent interest until the day she finally pays off the big balance transfer.

I received an offer this week that shouted "3.9 Percent Interest Rate!" in very large print on the envelope. Buried on the back of the application inside was this fine print: "If payment is late once during the introductory period, the rate goes to 9.99 percent. If payment is received late twice in any six-month period, 19.99 percent takes effect. If you do not make payments for two consecutive months, 22.99 percent takes effect on all balances on your account."

Did you get that? If you are late, you lose. Do it twice and you're toast. To make matters even worse, the punitive rates apply to the entire statement balance, not just future purchases or balance transfers.

Start watching your mailbox for ads with large impressive print that say, "Nothing Down! No Payments!" Open those offers to get a better look. Read all the good stuff in the big print. It sounds great, doesn't it? Then take a few minutes to search for the fine print. That's where you'll learn the real terms of the offer. You'll get a great education and become a more knowledgeable consumer.

Never skip the fine print. The smaller it is the more it deserves your attention.

Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
COPYRIGHT 2008 CREATORS SYNDICATE INC.