Overdraft stoozing?

Dirk_Gently_2

I quite expect to be shot down in flames by asking this, but is the money that you make from this sort of stoozing actually worth all the time it take and mental energy of moving money around between accounts and keeping track of everything to make sure you do it all on/before the required dates?

What sort of returns do you actually get for the time put in?

YorkshireBoy

Dirk_Gently wrote: »

...is the money that you make from this sort of stoozing actually worth all the time it take and mental energy of moving money around between accounts and keeping track of everything to make sure you do it all on/before the required dates?

"Worth" is subjective.

But with my £10K Santander overdraft stooz there's very little to do. I shift £1K in and £1K back out again each month (a condition set by them when they granted the facility 3 or more years ago).

Meanwhile the £10K I have is offsetting my 3.75% mortgage.

What sort of returns do you actually get for the time put in?

Enough* for me!

Mine costs me (12 x £20 £240, a year, but saves me (£10K x 3.75% £375 a year, so that's a £135 profit. There are other benefits (to me) though...because I'm 100% offset I don't have to make a monthly payment on my mortgage, meaning I can save that £30 a month elsewhere.


* When I started this the rate was 0%. Then it went to £5 per month, then £10 per month, then the current £20 per month. Obviously I'd rather be making £375 per year, but £135 will do for the time being.

stevemcol

Dirk_Gently wrote: »

I quite expect to be shot down in flames by asking this, but is the money that you make from this sort of stoozing actually worth all the time it take and mental energy of moving money around between accounts and keeping track of everything to make sure you do it all on/before the required dates?

What sort of returns do you actually get for the time put in?

I can see your point and for me personally, no it's not generally worth the time anymore, but that's just my view. Interest rates were much higher when I was stoozing, and credit card balance tansfers were free. I do get tempted into the occasional stooze now but only if it's very low maintenance/ fully automated and very long term. Overdraft stoozes are a good example of low maintenance and long term. You can set up standing orders to pass the required amount of money back and forth each month then just let it run.

StuC75

not forgetting though how being at the limit of an overdraft can be a negative on the credit report \ score / mortgage evaluation..

YorkshireBoy

StuC75 wrote: »

not forgetting though how being at the limit of an overdraft can be a negative on the credit report \ score / mortgage evaluation..

I've no need for a mortgage, but my situation (as described above) hasn't stopped the pre-approved offers (Halifax, LTSB, HSBC, & Nationwide [just today in fact]) for credit cards coming.

They all say "based on what we know about you" (by which they mean, as well as your accouint management with them, the information they get from the CRA monthly feeds), but since I've been overdraft stoozing I've never yet been declined for a pre-approved offer (or had an abyssmal credit limit given).


Disclaimer: My experience may not be shared by others, and if I was desperate for credit, or especially a mortgage, I wouldn't be doing it.