Savings and credit cards

gotenks1321

Basically a bit of background first otherwise it doesn't make sense lol.

I have a credit card balance of £2000 that I will be transferring to another card in September for a 12 months interest free period. It will take me roughly £170 a month to pay it all off before the period runs out.

Now I suddenly had a thought this morning that would it be worth paying the minimum balance each month (around £50ish) and putting the rest into a savings account to gain some interest until the years up? Then I could pay the card off with what's in the savings and have gained a little bit in interest

Would it be worth doing and what would be the best account to pay it into?

Not too sure if this should be here for credit card related or in the savings forums.

Thanks

sicker

That is what many on this site do. To save I personally use Bradford & Bingley internet saver 3, Kaupthing Edge and ICICI as the main recipients of my available cash.

emma396

yes, as long as you have the willpower not to spend the money you are saving to pay off the CC.

NickX

gotenks1321 wrote: »

Now I suddenly had a thought this morning that would it be worth paying the minimum balance each month (around £50ish) and putting the rest into a savings account to gain some interest until the years up? Then I could pay the card off with what's in the savings and have gained a little bit in interest

Well Done :beer:

You have discovered the world of stoozing, and there are many on these boards that participate in such activities, some have made a rather nice little supplement to their income this way.

Check out the stoozing sub board at the top here. Also see the site www.stoozing.com which also has a dedicated forum.

Warning though, once you start stoozing it is quite addictive and before you know it you have several cards on the go at the same time.

exel1966

NickX wrote: »

Warning though, once you start stoozing it is quite addictive and before you know it you have several cards on the go at the same time.

But it's very profitable and pays for those regular carribean hols ! Aren't credit cards great !!

gotenks1321

Thanks.

I thought stoozing was where you trasfer the full balance of the card over and make interest on that? I spent the £2000 on various things over the last year and now am thinking of paying the minimum each month and the rest into savings. Is that still stoozing?

I fully plan to take advantage of stoozing once that cards transferred and closed though :beer:

Thanks for the recommendations for accounts Just looking over a few and is it better to apply for the ones with interest monthly or annually for my current situation? And for future occasions where I'll be stoozing properly

YorkshireBoy

exel1966 wrote: »

But it's very profitable and pays for those regular carribean hols !

But slow-stoozing and fast-stoozing with 2-3% BT fees mean it's more likely to be a Spanish Costa these days.

NickX

gotenks1321 wrote: »

I thought stoozing was where you trasfer the full balance of the card over and make interest on that?

That is "fast stoozing".

What you have suggested is known as "slow stoozing", and I think Martin refers to it as "simply spend stoozing".

I am going to do the same in the next couple of months. I have about £3000 to spend, I was going to use a cashback card, but have now decided to put it on a 0% interest purchases card for 15 months. Should earn a bit of interest, and NO Balance Transfer fee to worry about.

exel1966

gotenks1321 wrote: »

Thanks.

I thought stoozing was where you trasfer the full balance of the card over and make interest on that? I spent the £2000 on various things over the last year and now am thinking of paying the minimum each month and the rest into savings. Is that still stoozing?

Oops you got a thanks !

Yes that's stoozing, it's basically making money for yourself from somebody elses money and there are various ways to do it.
Just bare in mind that it can and will impact your credit rating, but done sensiblely it's quite rewarding ! The site mentioned above is a great place to read up on all you need to know.

exel1966

YorkshireBoy wrote: »

But slow-stoozing and fast-stoozing with 2-3% BT fees mean it's more likely to be a Spanish Costa these days.

Yes it's certainley not as profitable as it used to be and like all good things will probably come to an end sooner rather than later, but whilst it can be done, it will be done. I managed St Lucia on last years proceeds, but this year............Bogna perhaps !;)