Have I got this right?

MandyL_2

Thought I had it in my head then went back and reread the article, over and over....:o

To get a pile of money in my savings account, do I definitely need the Egg card? I guess I can't just apply for a credit card and then transfer the balance out?

Also, I read about putting it against the mortgage. We have a flexible mortgage and are making over payments when we can. A month after the first overpayment, I rang the mortgage company and was told that if we took our money out again then our repayments would end up more than they were in the first place. What worries me is that if I put the pile of money off the credit card into the mortgage, then when it comes to paying it back, won't I get whacked? I know it saves money in interest but I'm not sure I'm convinced it will work.

Any money saving advice more than appreciated!!:T

Bisoy

I am 100% sure that it will work and quite a few who have done. But it is no longer very profitable as credit card providers now charges fees on BT.

It might also helps if you visit https://www.stoozing.com.

cheers

Gordon_the_Moron

Not all cards charge a BT fee, slow stoozing is still an option and if you have a good credit rating and can get very high limits some cards cap the fee so the maximum fee can a small percentage of the profit and still worth it.

emcwill

If you want to do the balance transfer route then you do need an Egg Money card as it is the only card that allows you to generate a +ve balance (by making a balance transfer to the 0% card for a non-existent debt) and then withdrawing that balance to your current a/c. Most cards do not allow balance transfers to your current account, only to other credit cards so you cannot simply 'transfer the balance out'. (There are exceptions and some cards do offer what Martin refers to as 'super balance transfers' to your current a/c - the MBNA cards like Virgin or A&L for example, and also the Egg green card.)

Of course you do have to weigh up the handling fee for a BT against any profit you make from putting the money into your mortgage. I have a flexible mortgage with NR and currently have 15k worth of stoozed money substantially reducing my interest payments for 6 months. Even after paying a £75 fee to Virgin I'm looking at a good profit as I managed to get a high credit limit when they combined my A&L and Virgin card limits when I closed my A&L card.

Bear in mind an uncapped BT fee of 2.5% over a 6 month period is equivalent to annual 5% mortgage interest so if your mortgage interest is less than that you'll actualy lose out (which is why I can no longer make use of my Egg card anniversary offer).

What I don't understand is why, if your mortgage is fully flexible, your provider says you will owe more once you withdraw the stoozed money. With NR any overpayments I make can be borrowed back again once the cards need paying off. I work out 5 months of min payments (the 6th month the balance is due) and put that in an instant access account so I can make the monthly payments without troubling the rest of the money in the mortgage as I can only withdraw sums of £500+.

I'm wondering if with your mortgage any repayments you make are capital repayments that can't be drawn back again without effectively increasing your loan (even though you're not actually increasing it from your starting point).

I think you need to read your mortgage t&cs really carefully and call them up. (Tell them you've got some money from a bonus you want to put aside but will need it for household repairs later or something.) If you don't understand what you're getting yourself into then don't try it. It's not worth ending up owing more money and having a worse credit rating (mine looks awful with so much apparent debt!)

If this seems at all complex then simply a get a 0% for purchases card and put the money you spend on that in a savings account, making sure you can repay the whole when the 0% period is up.

Sorry this is so long. I hope this is helpful but please don't take anything I say as recommended financial advice! I'm not a financial advisor!!