New to stoozing

I have read up a bit on stoozing and was wondering if you could give me some advice.

I would like to get into this and would go down the route of purchasing things on a card and let my savings build up in a higher interest savings account rather than transferring the money into a savings account. The only thing is, I wouldn't know how much to take out on the credit card for this, does anyone have any idea what would be a good starting point?

It is a bit of a vague question but I am not sure where to start to be honest even though I have read up quite a bit on it.

Thanks in advance

Replies

  • Sorry I should also have added that I do understand how credit cards work, I have just paid off my third credit card. So I understand that side of things.

    What I am trying to get it is that you obviously don't want to spend more money on the credit card than what you would accumulate in your savings account as this would leave you short but then you also wouldn't want to max out the credit card too soon as this would leave you not being able to earn more money while stoozing.


    I hope that makes sense?!
  • JohnRoJohnRo Forumite
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    Slow stoozing is the place to start. You've read "a bit" so you understand how it works.

    Get a 0% purchase card, tesco or similar, DO NOT spend anything on it that you would not normally have spent anyway. If you're planning a big item purchase or have an annual insurance or bill or similar payment due then that is a good thing to stooze. Put all your regular monthly outgoing that you're able to onto the credit card as well. Obviously the credit limit and the 0% term are the limiting factors here. Always check the purchase isn't costing you more on a credit card than it would have done paying for it in other ways (DD discounts, surcharges etc.) or it defeats the objective.

    You won't MAKE money doing this, what you will do is SAVE money by reducing the cost of the items you purchase using the 0% credit card. The amount you save is determined by the amount of interest you earn on the matched balance in a high interest saving account.

    To MAKE money from stoozing requires a time investment, at current rates it takes about 10-12 months to earn enough interest to pay for the balance transfer fee, after that the interest is all yours, so the longer the 0% offer lasts and the higher your credit limit, the better.

    In all cases make sure every single penny of the outstanding balance on the card(s) is available to you and accessible to pay off that outstanding balance should it be required, to avoid charges. If you lack the discipline to do that one simple thing then a debt spiral awaits, ready to swallow you whole.

    The other thing to consider is making sure you have enough money available each month to cover the minimum monthly repayments but if you use it properly this is guaranteed. Minimum repayment is a small percentage of the balance outstanding or a minimum fixed amount, whichever is the greater.

    It isn't difficult or complicated, just be financially disciplined or you will crash and burn.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • thanks for the response.

    You mention earning enough interest to pay the balance transfer. If I was able to just pay the credit off at the end, any profit would be mine and I wouldn't have to do a balance transfer would I?
  • edited 6 March 2012 at 6:43PM
    JohnRoJohnRo Forumite
    2.9K Posts
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    edited 6 March 2012 at 6:43PM
    It's not entirely clear what you're talking about or proposing.

    A slow stooze is a credit card promotion with 0% on purchases for a set period of time, simply use it for spending as you would normally but match every penny owed on the card with a penny saved in a high interest, easy access, savings account.

    A fast stooze is a 0% balance transfer from an existing card or a cash transfer to a bank account (3% and 4% fee typically). Its called a balance transfer but in reality it is a simple credit push, which then needs to be repaid before the end of the 0% promotional period, but can be stored in a high interest savings account until that time.

    Slow stoozing saves you money (by reducing the cost of purchases) from interest earned, fast stoozing makes you money from interest earned - after the interest earned has recouped the transfer fee.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • chris_n_tjchris_n_tj Forumite
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    billet, naughty person again reported
    RIP TJ. You my be gone, but never forgotten. Always in our hearts xxx
    He is your friend, your partner, your defender, your dog.
    You are his life, his love, his leader.
    He will be yours, faithful and true, to the last beat of his heart.
    You owe it to him to be worthy of such devotion.
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