Is it worth stoozing???

mattk35

Afternoon all, I'm about to book a holiday which will cost £1400. I have the £1400 saved in the bank. All my bank accounts offset our mortgage which is at a rate of 4.99%.
I was thinking of putting the holiday onto a 0% credit card for 10months and letting the money sit in the bank for aslong as possible. The thing is that the holiday company will charge me £30 to pay for the holiday on the credit card.:mad: Is there a way of working out if i'll be better of paying for the holiday off my debit card or will I save more money by paying the £30 and stoozing. Does all that make sense?

tinkerbell84

Depends how much money that £1400 would save you by having it sit in the offset.

How big is your mortgage?

mattk35

It's £73,000 with 19years left to go.

YorkshireBoy

tinkerbell84 wrote: »

How big is your mortgage?

That's not relevant, or are you just being nosey?

Matt,

From the stoozing site's calculator...

Stoozing Profit Prediction

Data entered by the user
Balance to be transferred (pounds)...... 1400
BT card interest rate (%) .............. 0
Introductory period (months) ........... 10
Balance Transfer Fee (%) ............... 3
Maximum BT Fee (pounds)................. 30
Min Monthly Payment Type ............... Percentage
Min Monthly Payment Amount (% or pds) .. 1
savings interest rate (AER %) .......... 4.99
Tax rate ............................... Not taxed or offset

Your Results
Stooz pot balance at end of intro ...... 1321.59
Credit card balance at end of intro .... 1266.13
Tax on interest to be paid ............. 0
Balance Transfer Fee paid (pounds)...... 30
Your Profit ............................ 25.46

Created using the Stoozing Calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission.

...it looks like you'll be better withdrawing from the offset.

However, I've made a couple of assumptions...

1. The mortgage rate is fixed...is it?
2. The minimum payment is 1%...a Halifax card perhaps?

mattk35

Thanks YorkshireBoy, Yes to both your assumptions. I'll be adding the stoozing link to me favorites.

Idiophreak

mattk35 wrote: »

Afternoon all, I'm about to book a holiday which will cost £1400. I have the £1400 saved in the bank. All my bank accounts offset our mortgage which is at a rate of 4.99%.
I was thinking of putting the holiday onto a 0% credit card for 10months and letting the money sit in the bank for aslong as possible. The thing is that the holiday company will charge me £30 to pay for the holiday on the credit card.:mad: Is there a way of working out if i'll be better of paying for the holiday off my debit card or will I save more money by paying the £30 and stoozing. Does all that make sense?

If you're interested in stoozing, why not just go the whole hog...Pay with your debit card, save yourself £30 straight up. Then transfer the balance onto a virgin CC at 0% for 16 months...transfer the max from your card, sit it in the account for the duration, then whip it back onto the card before the 16 months runs out...you'll pay more than £30 in the BT fee, but be a lot better off in the end...

LongTermLurker

mattk35 wrote: »

Afternoon all, I'm about to book a holiday which will cost £1400. I have the £1400 saved in the bank. All my bank accounts offset our mortgage which is at a rate of 4.99%.
I was thinking of putting the holiday onto a 0% credit card for 10months and letting the money sit in the bank for aslong as possible. The thing is that the holiday company will charge me £30 to pay for the holiday on the credit card.:mad: Is there a way of working out if i'll be better of paying for the holiday off my debit card or will I save more money by paying the £30 and stoozing. Does all that make sense?

Stoozing aside, remember the golden rule - a credit card offers protection that a debit card doesn't, if your hotel/flight company fails to deliver - I have read that Visa Debit cards offer a similar type of cover, but I'm not sure and would recommend you read up on it. It all works on the principle that credit card companies are jointly liable with the the seller if you need to claim for non-delivery of goods or services (eg you fly to Mallorca but the company goes belly up and won't/can't bring you back).

YorkshireBoy

LongTermLurker wrote: »

a credit card offers protection that a debit card doesn't

Good advice.

Just to add, providing the purchase price is between £100 and £30,000 you only need to pay a deposit (in the extreme, £1 if they'll let you!) to secure section 75 protection on the full purchase price.

LongTermLurker

YorkshireBoy wrote: »

Good advice.

Just to add, providing the purchase price is between £100 and £30,000 you only need to pay a deposit (in the extreme, £1 if they'll let you!) to secure section 75 protection on the full purchase price.

didn't know that

...I do now :beer:

firesidemaid

p.s. did you ask for a discount;)

smartpicture

Could I just add - its only worth stoozing if you are a very organised person who will definitely remember and make time to sort everything out properly at the end of the 0% - otherwise one lot of interest charged could mean you make a loss.