Stoozing-is it really right?

meheraltaf

First of all to say I dont know very much on stoozing-but the little I understand seems like it is not so straightfoward a way of making money. Also wont you put your family at risk-if you just die and go away leaving your already strssed family to deal with this, specially if you'v invested in some risky and shady companies:question:

Excuse my ignorance, just in case this was stupid question and thanks in advance to anyone kind to reply.

Ken68

Martin Lewis was interviewed on Watchdog the other evening and the main presenter said he could never do it, but no problem as long as the money is re-coverable immediately.Don't suppose the Pope does it. :-)
Just make sure your next of kin know the date to repay. Put a sticky on the safe door.

grumbler

meheraltaf wrote:

...Also wont you put your family at risk-if you just die and go away leaving your already strssed family to deal with this, specially if you'v invested in some risky and shady companies:question:

Martin's article: REVENGE! Make Free Cash from Credit Cards => STEP 2: Earn maximum interest :

...maximize the interest you earn, by moving the money into the highest interest safe savings vehicle possible. Though always ensure it’s one giving you access to this cash whenever it’s needed in case you have to pay off the credit card bill.

See also:
http://www.stoozing.com/risks.htm
http://www.stoozing.com/savings.htm:

The types of account listed have the following characteristics, which we believe make a good stooz pot account

High interest rate – to maximise your return
Instant or near-instant access – to enable you to pay your credit card bill promptly.
No penalty for withdrawals
No limit to withdrawals

http://www.stoozing.com/offsets.htm

gizmoleeds

meheraltaf wrote:

...specially if you'v invested in some risky and shady companies:question:

Excuse my ignorance, just in case this was stupid question and thanks in advance to anyone kind to reply.

Stoozing only works with credit cards offering 0% interest periods, and these are all reputable companies. If you have any sense you would just transfer the money from the card into a bank savings account (or perhaps into an offset mortgage account) and so there shouldn't be too much risk involved. You really just need to make sure you know when to repay it by - if you make sure your family also know this (and it is prominently marked in your diary) there shouldn't be too much risk.

Clariman

lso wont you put your family at risk-if you just die and go away leaving your already strssed family to deal with this, specially if you'v invested in some risky and shady companies

You must have misunderstood what stoozing is all about. Stoozers simply borrow money 'free' using 0% credit cards and save that money in a bank account and keep the interest. There is no question of "investing" in any companies, let along shady or risky ones.

Sure - if you died and you had not told your partner about your stoozing activities they might get a shock to see all that credit card debt, but no sensible stoozer would keep his/her partner in the dark.

Clariman

Halaku

Nothing wrong with borrowing money at a low interest rate and investing it for higher returns. Banks do it all the time!

meheraltaf

I think my dilemma is one of morality here-exploiting a 0% credit facility

A question-wont the lenders able to identify stoozers? Do stoozers honestly tell their lenders that you borrow for stoozing?

Grumbler-I liked your signature. By the way, I am bad at understanding these links so ask my questions to the MSErs...:o , but thanks, after new year'day when I find time, will read in leisure

Thanks Gizmo-I'll pm you on this

Clariman-If people simply invest in current account, what benefit in stoozing, excepting the feeling that you have one big fat savings there for you? I should have imagined that stooozers invest this elsewhere and draw more interest and then take it out and return it to the lender and then seek elsewhere for such capital-and that is where I feel, something is not so right about the concept of stoozing

Halaku-Banks can afford, but we individuals are mere mortals?

Any response, please dont ridicule-I genuinely want to figure out what my dilemma is about...:o

nearlyrich

I can't really understand why you have a moral dilemma, for every stoozer there are thousands of people who take up the 0% deals and do what the banks expect, nothing.

Most people end up on the 15% interest and you can bet that the banks don't have a moral dilemma about how much they make from these customers.

As other posters have said to stooze properly you would ensure the money is available in a high interest account to pay off as it becomes due.

gizmoleeds

meheraltaf wrote:

I think my dilemma is one of morality here-exploiting a 0% credit facility

Banks provide 0% interest or 0.1% interest accounts all the time, and the money saved in them the banks lend out via credit cards at 19%. If these same banks then, for once, provide us with 0% credit then I see no problem in putting it in a 4 or 5% interest account. It's just doing what they do but on a much much smaller and lees lucritive scale.

meheraltaf wrote:

A question-wont the lenders able to identify stoozers? Do stoozers honestly tell their lenders that you borrow for stoozing?

I doubt it.

meheraltaf wrote:

Clariman-If people simply invest in current account, what benefit in stoozing, excepting the feeling that you have one big fat savings there for you? I should have imagined that stooozers invest this elsewhere and draw more interest and then take it out and return it to the lender and then seek elsewhere for such capital-and that is where I feel, something is not so right about the concept of stoozing

I think Clariman was referring to instant access savings accounts, which will pay 5%+. Also a decent current account should pay 4-4½%+ too so would still give you a decent return.

EdInvestor

Hi meher,

What does a bank do? It encourages you to leave your money on deposit at the lowest possible interest rate it can pay ( eg 0.5% to some dozy customers) and then lends it out at the highest interest rate possible ( eg 28% for some dozy credit card customers).Then it pockets the difference as its profit.All perfectly legal.

A stoozer does the same thing but in reverse:s/he spots special offers from credit card companies of loans at 0%, borrows the money and then puts it on deposit at 5%, pocketing the difference. As long as the money is available to be repaid when due, there's no risk.

Some of the more numerate students have been known to make a profit by borrowing low-interest student loans and then putting the money on deposit at a higher interest rate and pocketing the difference.

I think they call it capitalism

CTT_2

meheraltaf wrote:

I think my dilemma is one of morality here-exploiting a 0% credit facility

A question-wont the lenders able to identify stoozers? Do stoozers honestly tell their lenders that you borrow for stoozing?

Grumbler-I liked your signature. By the way, I am bad at understanding these links so ask my questions to the MSErs...:o , but thanks, after new year'day when I find time, will read in leisure

Thanks Gizmo-I'll pm you on this

Clariman-If people simply invest in current account, what benefit in stoozing, excepting the feeling that you have one big fat savings there for you? I should have imagined that stooozers invest this elsewhere and draw more interest and then take it out and return it to the lender and then seek elsewhere for such capital-and that is where I feel, something is not so right about the concept of stoozing

Halaku-Banks can afford, but we individuals are mere mortals?

Any response, please dont ridicule-I genuinely want to figure out what my dilemma is about...:o

With my stoozing money I share my good fortune
Some of my stoozing money goes towards two charities and no I dont feel guilty because by stoozing I am helping others. Sorry but your post really
p...sed me off.

PS. No I am not sorry its people like you that p me off.