Few questions regarding card stoozing

ozmusafir

I recently stumble across the subject of card stoozing, and wanted to ask some experts a few questions regarding the topic. I am in possession of two 0% card credit which offer long term interest free periods on balance transfers and purchases respectively. Each card has a limit of 800GBP and the idea is to withdraw the full limit and transfer the amount to a high interest saving account one which preferably offers atleast 5% to 7%. Every month I will pay a minimum of 100GBP for each card until the amount is cleared. The whole idea is to accumulate interest on the money taken from the credit cards during the period. I understand that card companies change a balance transfer fee but I am unsure whether I would pay anything extra for cash withdrawal.
Any help would be appreciated greatly.;)

Tixy

What cards do you have?

Nearly all cards charge high interest for cash withdrawals, they are not eligible for 0% deals.

A few cards allow a money transfer aka super balance transfer. This is where you can transfer money to your current account from the card and pay a slightly high balance transfer fee.

But even if you card allows that if you plan on paying the cards back over just 8months then you might find that the savings interest doesn't earn you more than the balance transfer fee.

Have you identified a savings account that offers 5% to 7% interest on deposits of £800? (or £1600)

londonTiger

no, just no

cash withdrawals are never giving at promotional 0% rates.

balance transfers cost at least 2.9% fee (which is a lot).

the numbers dont make sense

ozmusafir

Tixy wrote: »

What cards do you have?

Nearly all cards charge high interest for cash withdrawals, they are not eligible for 0% deals.

A few cards allow a money transfer aka super balance transfer. This is where you can transfer money to your current account from the card and pay a slightly high balance transfer fee.

But even if you card allows that if you plan on paying the cards back over just 8months then you might find that the savings interest doesn't earn you more than the balance transfer fee.

Have you identified a savings account that offers 5% to 7% interest on deposits of £800? (or £1600)

I have the halifax 0% card.
Is there any method of cashing out which will appear to the creditors as a purchase transaction?
My aim is to cash out free of charge or else it won't be worth while.
My dad has a few offers from halifax for a saving account or I can put the money aside and wait for better offers during the start of the new tax year.

Tixy

Have you considered just saving the £200 a month that you would pay off the cards in to a savings account each month? you might well find that overall that leaves you better off than what you are proposing.

There is a method called the slow stooze, that can be used with cards that have 0% on purchases. You put all your day to day spending on the card, and then use the money left in your bank account that you haven't spent to put in to a savings account. I still doubt you will make much money over just 8months compared to just putting the £200 a month in to a savings accounts.

londonTiger

Tixy wrote: »

Have you considered just saving the £200 a month that you would pay off the cards in to a savings account each month? you might well find that overall that leaves you better off than what you are proposing.

There is a method called the slow stooze, that can be used with cards that have 0% on purchases. You put all your day to day spending on the card, and then use the money left in your bank account that you haven't spent to put in to a savings account. I still doubt you will make much money over just 8months compared to just putting the £200 a month in to a savings accounts.

Yeah this slow stoozin is what gets sensible people in debt. The 0% cards are what gets people into a spiral of debt. You have to have tremendous discipline when you get into that game.

Mozette

londonTiger wrote: »

Yeah this slow stoozin is what gets sensible people in debt. The 0% cards are what gets people into a spiral of debt. You have to have tremendous discipline when you get into that game.

Not sensible people

planteria

it all depends on how focused and serious people are about applying a system

MrsCautious

The best savings accounts rates seem to be around 2 per cent at the moment, unfortunately, and lower for instant access.A First Direct savings account has been paying 8 per cent but there's a post elsewhere on these forums raising the prospect of it closing and it requires a FD current account. There's nothing to suggest interest rates will make a sudden jump to the level of interest you mention even if we all wish they would

londonTiger

Mozette wrote: »

Not sensible people

ok maybe not the right word. I should say 0% interest purchase cards is what gets people who don't borrow money into borrowing frivolously.

Start spending money in a way they never would have had they been spending money via their debit card.