New to stoozing

Tomeleon

Hi Money Savers,

I was always tempted to get into this stoozing business. I have never been brave enough though. I am keen saver myself yet I have not crossed stoozing bridge yet. I roughly understand the process, but I am not confident enough.
Is there anyone out there patient enough to guide me or give me step-by-step instructions on how to go about doing it?
Nicely please:)

Thanks!
Tom

lightbulb2760

There are two forms of stooze: the slow stooze and the fast.

The slow stooze works as follows:

Apply for a card that gives you a 0% interest period on purchases for as long as possible (e.g. 15 months). If you have the choice of two (or more) with the same deal, then go for the one with the lowest minimum payments. Spend as much on the card as you normally would, setting up a direct debit for the minimum payment each month. Transfer the amount you spend per month on the card from your bank account to a high-interest savings account (one paying 3% aer or more). Don't spend more on the card each month than you have cash available to transfer into your savings account. If and when you reach your credit card limit, or when the interest-free period runs out, whichever is sooner, get a second card with a 0% deal, and continue.

The fast stooze works as follows:

Get an Egg Money card. This card allows a postive balance, which is essential to the fast stooze. Then get a card which allows a balance transfer at 0% fee, with a 0% interest-free period. For example, if you have a current account with Santander, or Alliance & Leicester, the Santander Zero card will do this.

Having got both cards, say you have a credit limit of £4000 on the Santander Zero. Set up a direct debit to make the minimum payment on the Zero card. Do a balance transfer from the Zero card to Egg Money (you may be limited to 90 or 95% of the £4000). The Zero card will pay £4000 to Egg Money. Open an Egg Savings account (as per the slow stooze above). Transfer the £4000 positive balance from Egg Money to Egg Savings, then further transfer the £4000 to its final destination.

When the interest-free 15 months come to an end, pay off the full balance from the savings account the original £4000 ended up in. Or, a few months before the 0% for 15 months ends, apply for another 0% 15 month deal on another card, if available. Start the cycle again.

Don't, under any circumstances, spend on the Zero card (unless they offer an interest-free period on purchases that is exactly the same, or longer, period as the interest-free period on the balance transfer, or you'll be charged interest.

For lots more info, look at www.stoozing.com

metalfury

A slow stooze might be a good way to start and understand the fundamentals until you're confident enough with what is involved in the Fast Stooze.

11cas

lightbulb2760 wrote: »

Having got both cards, say you have a credit limit of £4000 on the Santander Zero. Set up a direct debit to make the minimum payment on the Zero card. Do a balance transfer from the Zero card to Egg Money (you may be limited to 90 or 95% of the £4000). The Zero card will pay £4000 to Egg Money. Open an Egg Savings account (as per the slow stooze above). Transfer the £4000 positive balance from Egg Money to Egg Savings, then further transfer the £4000 to its final destination.

I found this really helpful - thanks. I was just wondering, will Egg charge you for any of the above - either the Egg money card being in credit or transfering it to a savings account?

jamesd

No. If you're using it for purchases as well you do need to ensure that the balance doesn't become negative as a result of the transfer. One easy way to do that is to make the transfer in two pieces, one for almost all of the money and a second a few days later for the safety margin money. Worst case than is a balance transfer fee on the safety margin money.