maximum stooze

$17mma

For all the stoozers

What I can not figure out is that when you empty the card into an Isa or High interest savings account.. but the monthly payments for the credit card come out of your own pocket or do you take it from the stooze pot?

YorkshireBoy

$17mma wrote:

For all the stoozers

What I can not figure out is that when you empty the card into an Isa or High interest savings account.. but the monthly payments for the credit card come out of your own pocket or do you take it from the stooze pot?

Just depends really. When I started stoozing I planned to make them from income - but it's difficult to find a 'spare' £1,800 per month!

Some people will bring the minimum payments back from the stooz pot. Others will make the payments from income, as a way of forcing themselves to save (and then move the equivalent amount from the stooz pot to their personal savings account - accounts with multiple jars such as ING are great for this).

Clariman

$17mma wrote:

For all the stoozers

What I can not figure out is that when you empty the card into an Isa or High interest savings account.. but the monthly payments for the credit card come out of your own pocket or do you take it from the stooze pot?

You can do it either way. If you take it out of the stooz pot then your stooz pot and your credit card are in synch all the time. Other people prefer to pay the minimum monthly payment from their current account as a way of enforced saving.
Clariman

$17mma

YorkshireBoy wrote:

Just depends really. When I started stoozing I planned to make them from income - but it's difficult to find a 'spare' £1,800 per month!

Some people will bring the minimum payments back from the stooz pot. Others will make the payments from income, as a way of forcing themselves to save (and then move the equivalent amount from the stooz pot to their personal savings account - accounts with multiple jars such as ING are great for this).

Sorry but I am new to this, what is ING? Does this stand for savings?

nearlyrich

$17mma wrote:

For all the stoozers

What I can not figure out is that when you empty the card into an Isa or High interest savings account.. but the monthly payments for the credit card come out of your own pocket or do you take it from the stooze pot?

I was paying out of my salary min payments of approx £500 on the 3 cards I have paid off, I used the stooze card profits and some of the capital up front to fund my DD's start at uni and pay the fees for both of them. The card I have now is an MBNA and min is only £5 per month and most of the balance is in my high interest savings account with the £500 per month paying the rest by June if I decide not to carry on stoozing, although my Egg anniversary will be coming up so who knows?

R00STER00

$17mma wrote:

Sorry but I am new to this, what is ING? Does this stand for savings?

Its a bank.

http://www.ingdirect.co.uk/

$17mma

nearlyrich wrote:

I was paying out of my salary min payments of approx £500 on the 3 cards I have paid off, I used the stooze card profits and some of the capital up front to fund my DD's start at uni and pay the fees for both of them. The card I have now is an MBNA and min is only £5 per month and most of the balance is in my high interest savings account with the £500 per month paying the rest by June if I decide not to carry on stoozing, although my Egg anniversary will be coming up so who knows?

So basically the interest that you receive per month must be more than the monthly min payment. But I suppose that if you are paying this out of your stooze pot then this does not matter as you are paying the CC company back their own money?

But if you use the money out of the stooze pot then the interest that you will be earning per month will reduce monthly..

R00STER00

$17mma wrote:

So basically the interest that you receive per month must be more than the monthly min payment. But I suppose that if you are paying this out of your stooze pot then this does not matter as you are paying the CC company back their own money?

But if you use the money out of the stooze pot then the interest that you will be earning per month will reduce monthly..

The interest will almost certainly not cover the minimum payment. I think the only time this would be possible is if you had something like one of the MBNA cards with min payment of £5.

Your monthly income from interest will be just less than 0.5% if you have a good savings account and most cards have a minimum payment of 2-3% so you can see this does not match.

There is not a problem using the stooz pot to pay the minimum. Sure, it means the balance is going down but at the end of the period you will only have missed out on a few £s of interest.

There are of course cards that allow you to do multiple BTs so you can top up the stooz pot. There are others that let you spend at 0% too. Both these would be a good way to keep your savings pot at a maximum.

Clariman

$17mma wrote:

So basically the interest that you receive per month must be more than the monthly min payment. But I suppose that if you are paying this out of your stooze pot then this does not matter as you are paying the CC company back their own money?

But if you use the money out of the stooze pot then the interest that you will be earning per month will reduce monthly..

I think you may have made a common mistake. Are you confusing the minimum monthly payments with interest payments ? Don't forget that if the card is a 0% card, then what you are paying monthly is all going towards reducing the debt on the card and none of it is interest. So even if it comes out of the stooz pot, the debt is reducing month by month. Yes, that means the stooz pot is getting depleted but not very fast. Some stoozers do another BT to put the money back in again !

Clariman