Bored waiting for a new 0% deal

deemy2004

Fine calcs

But I was saying I don't think that they are goign to offer many 0% deals on loans cos they (the banks) don't earn any revenue from lending people at 0%.

Whereas with credit cards they earn on the spending i.e. 2.5% on every transaction.

enjoy the booze, hick......

smartsaver

One company has offered a 0% loan deal until well into next spring, I think it may have been cahoot. After the introductory period you get charged interest so, unless you are stoozing, not many can afford to pay back 10k or even 5k in 6-8 months therefore the companies get their money...

APR wise it is just a cheaper loan for the first year to reel in the punters. But for stoozers  ::)  8) Watch this space.... It would mean bigger credit limits cos most loans are over 5 k  ;D

frequent

Deemy point taken

Re HSBC card I mentioned on Tuesday.

It just came the the letter box, thats pretty fast, I read on the ksbc thread peeps are stil waiting after 2 weeks.

Clearly appling in branch is quicker.

Crap limit though only 2k, still its all money into the pot 8)

Smitty

Smitty

Inflation/ deflation. I don't put them into the calculation, nor do I worry about the stooze pot decreasing monthly to make the payments with.

I'm getting free money paid monthly in cash, what ever I get goes into account C, so interest paid generates more interest so even if the entire stooze pot is paid off tommorow then account C is still generating free money.

You dont need to worry about depreciation of your stoozed money as it is not yours...

http://forum.moneysavingexpert.com/cgi-bin/yabb/YaBB.cgi?board=Questions;action=display;num=1098198923;start=0#0

But I think you need to consider that by creaming all the interest off pot 1, it is in effect decreasing in value. Due to inflation.

Walletwatch

Fine calcs

But I was saying I don't think that they are goign to offer many 0% deals on loans cos they (the banks) don't earn any revenue from lending people at 0%.

Whereas with credit cards they earn on the spending i.e. 2.5% on every transaction.

Looking at it from a business perspective, there is no denying the fact that 0% deals are a tool used by banks to garner more business, and increase their y-o-y profits. Should these deals fall out of favor, banks will need to limit their growth to (1) the extent to which their customers on the acquiring side (retailers) grow their business and (2) an increase in the net interest income from their existing customers. This sounds unlikely, and so there'll probably be a phase (brief though it may be, when 0% loans will be in vogue)

The credit card volumes will be compensated by value here, and the actual interest payers will be expected to more than subsidise the stoozers. It does sound too presumptous, but around a decade back, who'd have known that man would ever get free money for extended time periods, sometimes as high as 18 months !!!

johnllew

It does sound too presumptous, but around a decade back, who'd have known that man would ever get free money for extended time periods, sometimes as high as 18 months !!!

Yes, but 10 years ago, credit card issuers were giving 5% rebates on balance transfers - now that was a real moneyspinner. Things change with the times but there are usually opportunities to make money somehow.

bethyblue612

10 years ago, credit card issuers were giving 5% rebates on balance transfers

I remember those days! But I was too young and stupid to take real advantage of it, if only I'd *known* Martin then

deemy2004

Yes, but 10 years ago, credit card issuers were giving 5% rebates on balance transfers - now that was a real moneyspinner. Things change with the times but there are usually opportunities to make money somehow.

I recall cahoot doign that and Martin rabbiting on about it on the money channel

Which I might add,  I bought shares in and watched it go bust !!!
(the moneychannel and not cahoot)

MSE_Martin

Now Deemy :P - i was on Simply Money not the Money Channel (that was the Adam faith one - mine was the Angela Rippon one). The parent company of Simply Money now runs Simply Shopping, unlike the Money Channel it didnt have shareholders, didnt go bust, just changed its theme (and i ran as funnily enough being a shopping channel presenter would've slightly ruined my integrity )

deemy2004

Your right !

It was simply money  ;D

If only we had a little more faith in the money channel, it may have turned into the next bloomberg  :)