Stooze Pot and Minimum Repayment

cb1964

As some of you may have gathered from my previous posts, I am fairly new to this stoozing lark. I have just obtained my first card, a charity card from Bank of Scotland from which I have transferred the entire credit limit to my Egg Money card. My question is this, the minimum repayment is 2% each month which will gradually reduce my stooze pot. Is there a way of protecting this?

Milarky

The easiest way is to use purchases after the minimum payment is made. (All these cards seem to be 0% for both purchases and balance transfers). Depending on the terms, you may be able to do additional balance transfers also at 0% with no fee during the remainder of the term. In that case a minimum amount (£50 or £100) may apply - as often does - and you your minimum payment at 2% might not quite allow you to transfer. To get around that you would make a small additional payment on the day of the min payment and so 'create' a sufficient balance to transfer back again.

Both options have their advantages and disadvantages.

Something else to consider is being cheeky and asking for a credit limit increase after the minimum period allowed for this. (3 or 6 months?) and use that for further balance transfers if you can.

Finally it's not a significant proportion of your balance (at 2% per month) even over nine months: just 7% average reduction. Is it worth hasssling yourself for an extra 7%? The better option is to get another 0% card (2 times 93% = 186%)

grumbler

Check your T&C. AFAIK these cards offer 0% on BTs and purchases (check this!). After a mimimum payment is credited to your CC account you can spend (about) the same amount on the card to keep the balance close to the maximum. Then move the 'saved' money from your current account to your savings account ('stooz pot').

P.S. Beaten by Milarky!

bethyblue612

THIS ONLY WORKS IF YOU GET 0% ON PURCHASES AND BALANCE TRANSFERS FOR THE SAME LENGTH OF TIME

I have a BoS charity card and it is BOTH purchases and BT's but double-check yours.

You can maintain the balance outstanding on your credit card by using it for purchases for the next nine months.




You can maintain your stooze pot (if you can afford to) on ANY card, by making the minimum payments out of your current account and leaving your stooze savings untouched.