Please help me understand stoozing

Hello everyone

I am really interested in making some money and have been reading all about stoozing but i still havent quite grasped it yet!

I feel as I have no debts and always pay the CC off in full i could consider stoozing.

OK, so I apply for a CC with 0 % and then what do i do? How exactly do I make money /

Sorry for being so dopey; i think i need to read :confused: a Dummies guide to stoozing.

Many thanks in advance

Fiona
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Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541
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    booklover wrote:
    i think i need to read :confused: a Dummies guide to stoozing.
    How to stooz
  • tomstickland
    tomstickland Posts: 19,538
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    If you have a 0% purchase deal, for example 9months at 0% on purchases then you slow stooz. ie: buy everything (but don't withdraw cash) on your cc and meanwhile put the money you would have spent into a savings account.

    If you have an Egg card, you can balance transfer "from" the egg (money goes from the credit card with 0% BT deal into the Egg) and then balance transfer "from" your bank account (money goes from Egg into bank account) and then put into high interest savings account.
    Happy chappy
  • lapat
    lapat Posts: 816 Forumite
    im in the same boat here
    i dont get it even from the idiots guide link above

    as far as i can tell you get an egg money card and you balance transfer from your 0% card onto the egg card as you can sbt this into your bank account

    but what i dont understand is why does egg let you negative balance and why doesnt the 0% card provider check with egg what monies you owe them which of my understanding is nil

    any help would be gretefully listended to as i am really interested in this and maybe it might just be a simple explanation or lightbulb moment that we require
    need to have a lightbulb moment
  • Clariman
    Clariman Posts: 1,484
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    lapat wrote:
    im in the same boat here
    i dont get it even from the idiots guide link above

    as far as i can tell you get an egg money card and you balance transfer from your 0% card onto the egg card as you can sbt this into your bank account
    I think you've got it ... you just need to be a little bit careful with your "from's" and "to's". When doing a BT (or SBT) the money goes from A to B but it is defined as a Balance Transfer from B to A because you are transferring a negative balance (in theory).

    So, with Egg Money .... the money goes from your 0% credit card to Egg Money and then from Egg Money to your bank account. The actual Balance Transfer operations are the other way round, so it is ....
    (a) Ask you 0% credit card provider to do a BT from Egg Money to the 0% card.
    (b) Ask Egg Money to do a Balance Transfer from your bank account to Egg Money.
    but what i dont understand is why does egg let you negative balance ...
    Errr.... Egg doesn't have a negative balance. It gets a positive balance i.e. you are not in debt. Maybe that is what you mean? Egg let you have a positive balance because this card (uniquely) is designed to let you have a positive balance. That is why it is so good for stoozers!
    and why doesnt the 0% card provider check with egg what monies you owe them which of my understanding is nil
    ... primarily because they don't really care. Most credit card companies just want to have your dent so that they can start earning interest payments from you (they hope). Secondly, there is no direct way they could check you have a real debt because there is no realtime info available that would tell them and it would probably go against your privacy rights. One important proviso here .... some credit card companies specifically state in their Ts & Cs that it has to be a real debt that you transfer so you could be in breach of the Ts & Cs.

    Clariman
    Author of the first Stoozing FAQ on the Internet and Creator of the SOA & Snowball calculators at Lemonfool.co.uk
  • Very idiot's guide (as I understand it! :p )

    Method 1. Transfer outstanding balance from high interest CC's on to interest free CC and save the interest.

    Method 2. Spend on interest free CC and put the cash you spent into a high interest savings account (or into your mortgage if you can!), so that you gain the interest.

    In both cases you have to be careful that you have the money available to pay off the CC when the interest free period ends - if you are a solvent MSE you can often transfer the outstanding balance to another interest free CC, but no-one is guaranteeing these will still be around when the interest free CC period ends!

    I think that's it, really (and obviously you can mix and match the above). One specific health warning is about benefits. If you are likely to go on benefits, the BA will take accounts of all your assets BUT NOT YOUR DEBTS, so be very cautious about having large stoozing balances which you will have to repay.

    HTH!
    I was a board guide here for many years, but have now resigned. Amicably, but I think it reflects very poorly on MSE that I have not even received an acknowledgement of my resignation! Poor show, MSE.

    This signature was changed on 6.4.22. This is an experiment to see if anyone from MSE picks up on this comment.
  • lapat
    lapat Posts: 816 Forumite
    the penny has dropped thanks all
    im looking at doing it intially to help assist pay of my cc as i spent a few quid on them when i moved house.
    then hopefully progress onto my morgatge fingers XXXXXXXXXX
    need to have a lightbulb moment
  • kelloggs36
    kelloggs36 Posts: 7,703
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    I got a load of MBNA cheques in the post yesterday and it said on the side "inject some cash into your bank account" (or words similar!) I rang them and asked if I transferred the whole balance from my MBNA card (which has nothing on it at present, but I could potentially borrow over 8k) into a bank account of my choice, whether I would be charged any interest. It was confirmed that I would pay no interest, just a handing fee of 75 pounds. When I calculated the amount of interest I would earn in my savings account over 10 months, and deducted the 75 pounds, I stand to make a net GAIN of over 300 pounds. I have therefore taken the money and when it comes, will put it into my savings account, and as I am a not a tax payer, I stand to earn the gross interest on the dosh!!!!
  • Wyndham
    Wyndham Posts: 2,429
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    lapat wrote:
    the penny has dropped thanks all
    im looking at doing it intially to help assist pay of my cc as i spent a few quid on them when i moved house.
    then hopefully progress onto my morgatge fingers XXXXXXXXXX

    If you are thinking about stoozing you should not be in debt. It won't assist you to pay things, the important thing is to keep the money safe so you can pay it back to the credit care company when you need to. Be careful, this can be a slippery slope, and I'd hate to think of you more in debt at the end because you'd tried this.
  • Hello

    I'm just bringing this up again as I'm going to try to understand it again! I have been too busy recently looking after my sick mother.

    I currently have a Halifax goldcard and pay it off in full each month without incurring any interest.

    In order to stooze and make money, in really simple terms, how do i get the money from the credit card I apply for to stooze into my Current Account.

    OK I told you i dont really get this!! Can you really make money and I don't undertand Balance Transfer as I'm not paying interest. I get cashback on my current halifax CC.

    PLease any more simple/very basic tips would be very gratefully received.

    Thanks a lot
    :confused


    Fiona
  • YorkshireBoy
    YorkshireBoy Posts: 31,541
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    booklover wrote:
    PLease any more simple/very basic tips would be very gratefully received.
    Fiona,

    Did you read the 'How to stooz' guide I gave you in my reply above?

    How about Martin's guides?...

    Stoozing & Super Balance Transfers

    Rather than ask for 'tips', which will result in utter confusion (for you) when 20 people each give you a couple of snippets of information, it'd be best if you read the articles already written and then ask for clarification on any specifics you don't understand.

    How does that sound?
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