Anyone thinking differently now?

IT_nerd

About putting borrowed money in a high interest savings account and hoping it's safe.
I bet some stoozers yesterday were feeling a bit uneasy when their icesave account wouldn't let them access it.
Being stuck with £12,000 credit card debt with very high interest rates sounds like a risk too high in the current economic turmoil.

What do you think? Will you still be stoozing?

chairman_miaow

I had some stoozed money with Kaupthing Edge and was due to pay off my Abbey Zero balance next month....so I got the money transferred back sharpish yesterday (at least , I hope I have !)

It's certainly made me think twice about stoozing again though...

belfastgirl23

I am so glad that it seemed like to much hassle to put my stoozepot in an icelandic bank or I would be a very worried person by now. _pale_

I'm not saying I wouldn't stooze again but I must admit that I had not appreciated what the risks could be!

chairman_miaow

Indeed....still haven't received my money from Kaupthing (but I know it's due to the backlog etc - been on the savings forum a lot !) - but for a while I was worried I had created a debt on my Abbey Zero card and lost the stoozed money to pay it back....well , still AM worried really , until I see the money back in my first direct account !

Any

NO, not at all.
As I don't have enough savings to stock up in my ISA to reach the limit, I hide my stoozing pot into NS&I ISA paying 4.6%. Not much I have to say, but the monies cannot be safer...

rodent

IT_nerd wrote: »

About putting borrowed money in a high interest savings account and hoping it's safe.
I bet some stoozers yesterday were feeling a bit uneasy when their icesave account wouldn't let them access it.
Being stuck with £12,000 credit card debt with very high interest rates sounds like a risk too high in the current economic turmoil.

What do you think? Will you still be stoozing?

Yes yes and yes !!!!!!

Altho maybe not how most do !

See:
http://forums.moneysavingexpert.com/showthread.html?t=1116283 (post 12)

The Rodent

JimmyTheWig

What about a savings account with the same bank that does your credit card? Presumably at the point of failure your savings would wipe clean your credit card bill and you'd just have to claim the excess from FSCS. I would like to think that it wouldn't take, e.g., three months for them to offset the two and charge you interest on your credit card while waiting.

So for me, our biggest outstanding balance by far is with Abbey. Savings currently with Egg. I'm not bothered about the other stoozing cards. In the unlikely event of Egg collapsing I could raise credit to pay off those ones. But I couldn't pay off Abbey without my wife's Egg savings pot.
So I'm thinking three months before the Abbey card is due transfer an amount the equivalent to what I owe Abbey to an Abbey savings account just in case.

JimmyTheWig

Following on from my post, the debt is in my name but the savings (for tax reasons) are in my wife's name.
Presumably in this case the savings wouldn't clear the debt. Presumably I'd still be liable for the debt (and interest) and my wife would have to claim from FSCS.

What about if it was in a joint account? Does anyone know?

LongTermLurker

JimmyTheWig wrote: »

Following on from my post, the debt is in my name but the savings (for tax reasons) are in my wife's name.
Presumably in this case the savings wouldn't clear the debt. Presumably I'd still be liable for the debt (and interest) and my wife would have to claim from FSCS.

What about if it was in a joint account? Does anyone know?

Well both the debt and the savings would need to be in joint names, surely?

With joint accounts, I read that the money is assumed to be half and half unless proven otherwise. I guess if there was say £80k in a joint a/c, a couple would get £40k each, but if "he" could prove that £50k was his, they would return all his money and give "her" her £30k back. TBH if it's in a joint a/c in the first place, I'me sure the couple could sort that bit out so it becomes a bit irrelevent.

JimmyTheWig

LongTermLurker wrote: »

Well both the debt and the savings would need to be in joint names, surely?

With joint accounts, I read that the money is assumed to be half and half unless proven otherwise. I guess if there was say £80k in a joint a/c, a couple would get £40k each, but if "he" could prove that £50k was his, they would return all his money and give "her" her £30k back. TBH if it's in a joint a/c in the first place, I'me sure the couple could sort that bit out so it becomes a bit irrelevent.

Thanks. The debt is a credit card so solely my debt. I take your point about an "uneven" split joint account, but that would mean paying interest unevenly too. And so if we decide to split it in my favour for protection then we pay more tax. Grrr.

LongTermLurker

JimmyTheWig wrote: »

And so if we decide to split it in my favour for protection then we pay more tax. Grrr.

They have you covered every which way - there's no winning :mad:

It's fun trying though