Newbie Stoozer

zeberdy · 10 February 2006 at 6:23AM

Hi All

I wondered if some of the seasoned veterans would look over this proposition to check I have not missed anything !

Applied for cap one card and got very nice crdit limit all done and dusted in less tahn 2 weeks HSBC fiasco still going on may deaf it unless it is BT free.

Any way assuming I BT £6400 from cap one to egg money it will cost me @ 2% 0f 6400 £128.

I will have to service the debt at min of 3% of loan/month so worst case £192 if I multiply this by 15 months to end of cap one 0% deal that is
£195 x 15 = £2880. Of cause this will be slightly less as the 3% figure will be reducing as loan is repaid.

So if I move 3000 into ISA at 5% interest = £150
Plus £3400 sitting in current account at 2.34% to service loan min payment =
£79.56 interest

This gives £150+£79.56= £229.56 interest less £128 BT Fee profit of £101.53

Not big money but have I missed any think or are there any ways to improve the return.

I suppose I could leave the £3400 in egg money at 4% but then every month I would have to pay the loan from this not sure if you can set variable standing orders from egg money to do this hence the plan on moving min balance requirement over term of loan into current account.

Hope that all makes sense and you can highlight any pitfalls or errors in my reasoning.

Thanks

Zeberdy

110frankie · 10 February 2006 at 7:22AM

I only understand about half of that :-(
But it sounds like an idea. I await others' replies with interest.

grumbler · 10 February 2006 at 10:00AM

1. Next time use Stoozing Calculator
2. There is no point in keeping £3400 on a low-interest current account. There are instant-access saving accounts around paying about 5%. A&L Online saver 5.15% for example. Also you can put another £3K into ISA in April. If you are going to use your next year allowance to save £3K you can use this regular 'savings' to make min payments to C1. Otherwise you can draw funds from ISA to make payments and waste you ISA allowance

zeberdy · 10 February 2006 at 11:23AM

Thanks grumbler did not know the stooze calc existed are their any hidden costs I have missed short of if a payment is late etc ? hence the reason for setting up a standing order /bill payment that I would make on line to vary the ammount and max the profit as the repayment reduces.

Zeberdy

grumbler · 10 February 2006 at 11:39AM

zeberdy wrote:

...are their any hidden costs I have missed short of if a payment is late etc ?

:eek: Don't even think about this! If you make a late payment you will pay a fee and, more importantly, will lose your 0% rate stright away.

hence the reason for setting up a standing order /bill payment that I would make on line to vary the ammount and max the profit as the repayment reduces.

The best way is to ask CC company to setup a Direct Debit for minimum payment on your current account. They will collect correct amount and on time automatically (just have sufficient funds on your current account!). However, be very carefull with the first DD payment because there could be not enough time to setup it correctly. Make sure that the first payment is collected by DD, otherwise pay manually on time.

Newbie Stoozer

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free