Stoozing - Something missing?

TheRichestManInBabylon_2

Hi People,

With stoozing, which I realise I am doing with my Virgin Credit Card, I think one small detail has been omitted. As far as I can see, there is no account given to the minimum repayments.

E.g. You stooze the cash, pay the 2.98% fee and save the cash, at 6%. However, for 16 months you pay the minimum repayment, which, when paid from the saved cash, significantly reduces the interest earned on the saved "stoozed" cash. Correct?

What is the real bottom line on stoozing? What interest rate would savings need to be at to allow for a profit, on a typical 2.98% transfer fee? Given the above

Cheers guys

epsilondraconis

I'm sure one of experts will be along in a bit to explain; however this may help you on your way to becoming the richest man in Babylon...

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

YorkshireBoy

...and with your Virgin card, and all MBNA run cards for that matter, the £25 minimums are (almost) negligible.

Clariman

TheRichestManInBabylon wrote: »

E.g. You stooze the cash, pay the 2.98% fee and save the cash, at 6%. However, for 16 months you pay the minimum repayment, which, when paid from the saved cash, significantly reduces the interest earned on the saved "stoozed" cash. Correct?

I suspect you are making a common mistake with regard to stoozing. You are saying that minimum payments reduces the interest you earn. Well they do ... but only in a small way.

Don't forget that your minimum payments also reduce the amount you owe on the card, so it doesn't reduce your profit in that way! Where it does reduce your profit a little bit is that the balance that you are earning interest on is gradually declining. The stoozing calculator link that has been posted will work this out for you.

Clariman

photonbucket

Hate to be harsh, but if you dont understand that, you shouldnt be stoozing.

dc

The attraction of the MBNA issued cards that was until last Autumn you only had to repay £5 a month so even more negligible effect on your pot than the current £25.

johnllew

photonbucket wrote: »

Hate to be harsh, but if you dont understand that, you shouldnt be stoozing.

Agreed....