Continued snoozing - worth it or not.

ktj

Is it financially worthwhile to keep snoozing?
I look after the family finances and between myself and my husband we have the following:-

for purchases:-
a card with 0% interest for 12 months (ending Oct.07); credit limit £5000 maxed out;
a second card ending " ( Feb.08); " £8000 and used for current spending.

for cards carrying former balance transfers:-
2 (one each) cards with 0% interest for 12 months (both ending April 08); credit limits £3250 and £4000;
a second card " (ending April 08); credit limit £5000.

At the end of the 0% interest period I take out new cards and do balance transfers so long as

a) the 0% interest period is at least 12 months and the balance transfer fee is 2% or less.

The balances on these cards are our only debt and the cash to pay them off is currently in a savings account paying just over 6% and that on a monthly basis is being paid into regular savings accounts paying 7 or 8%.

At the moment snoozing does seem to make sense, but with balance transfer fees continuing to rise at what point will it cease to be worth the effort.

johnllew

ktj wrote: »

at what point will it cease to be worth the effort.

When the profit you make isn't worth your time making it.

keeperbear

Most balance transfer fees are 2.5% to 3%. You are getting the money interest free for 12 months and investing it at around 6.5% less tax. So you are getting about 5.8% net per annum. A small overall gain. However, I have long since given up doing this. Why? The considerable time involved in juggling monthly payments and the potential impact it has on my credit rating. I prefer using my time to do some extra paid work now and again, but you may have other preferences.

QuidProQuo

ktj wrote: »

Is it financially worthwhile to keep snoozing?

Definately not

ktj wrote: »

At the moment snoozing does seem to make sense

Only if you are tired

[Deleted User]

Is it worth stoozing for a mere few hundred, of course it is, the banks make money out of thin air to invest so we should get them back and do the same

[Deleted User]

Is it worth stoozing for a mere few hundred, of course it is, the banks make money out of thin air to invest so we should get them back and do the same

The money is irrelevant to the job satisfaction :rotfl:

Bobby_Day

Hi, I'm new to the site so forgive if I'm asking old questions, however can anybody advise me? Being retired can not get a new card to stooze with, but my existing card is offering 0% until Feb08, I could transfer apprx 20,000 and if I got 6% from savings a/c wud this be worthwhile for this time and what are the snags that I can't see at the moment? It all seems a bit too good to be true or is it? Thanks in advance for any help and advice,

kirsty99

It depends whether or not you would pay a balance transfer fee. Most cards now charge a fee - some capped, others with no maximum limit, often in the region of 2.5-3.5%. So a 2.5% fee on 20k would be 500 - so you would need to make more than that in interest to make the transfer worthwhile.

stphnstevey

It depends on your risk to reward ratio - I beleieve as long as there is still a few hundred quid in it, then its worth it. If you look on the savings board you can see people scrabling for a few tenners for opening this that and the other - if you play it right, it still remains the highest paying freebie. Also a few hundred squid can buy you a telly or DVD player or what ever you want - I don't just look at the money but what I could get for that money.

WallyMan

I once had circa > £80k stoozed, all at 0% and without any balance transfer fees which saved me in excess of £4k each year off my mortgage interest. I've now more or less given up stoozing. Unless you can get 9+months 0% deals with their 2.5% or 3% BT fees it's not worth bothering with (IMHO)

It was great while it lasted. I just wish I started doing it 10 years ago!

TomJ

WallyMan wrote: »

I once had circa > £80k stoozed, all at 0% and without any balance transfer fees which saved me in excess of £4k each year off my mortgage interest. I've now more or less given up stoozing. Unless you can get 9+months 0% deals with their 2.5% or 3% BT fees it's not worth bothering with (IMHO)

It was great while it lasted. I just wish I started doing it 10 years ago!

A&L just rang me and offered me a balance transfer of cash to my current account interest free for 9 months with a 2.5% fee on my existing card. I asked them to ring me back on Monday, by which time my balance with them will be clear and I'll be free to take up that offer.