Looking into Stoozing...have I got my sums right?

Sea_Shell

After seeing some the the thread re stoozing i though i was missing a trick...but having looked at our current deal i'm not sure i am, or am i missing something.

We have an old Tesco Platinum Clubcard CC, which gives 1 point for every £2 spent (outside Tesco) and more for in (but we're Aldi converts now!!)

On average we spend about £600 per month on this and Debit/Cash. Pay off balance in full every month.

This equates to £3 in clubcard vouchers (300 points)

If this money was in a high paying current account at say 5% gross, this same £600 would only earn £2.50.

Am i also right in thinking that to make compound interest a factor, then i'd need a big CC limit, to be able to accrue a years spending at 0% (£7200+)

So...what, if anything, am i missing????

Cheers

plunt

well you could get a different card which has 0% purchases (which you would need in order to do this properly... with a decent credit limit

The way i have done it is i got a lloyds choice credit card which gave me 13 months 0% purchase. plus 1.5% worth of voucher for amazon/other various stores, and 0.3% if i use my mastercard.


Pay the minimum amount each month by direct debit. so the balance keep accumulating. now i managed to bring my balance up to nearly 12k fairly quickly (I was buying windows and various other items)

12k @ say 3% equates to £360 a year pre tax (slightly less due to timing of when i bought stuff
12k @ 0.75% (average cashback after using a mix of amex and mastercard) , an additional £90 (tax free)

at the end of the 13 months I plan to shift this debt to a 0% balance transfer card (Tesco or Santander) so it can continue to earn that 3% due to the cash sitting in my savings account

Also remember as you are paying the minimum each month you have to spend a little more on the card so you can get the most out of the points & savings interest

Just remember to have a card with 0% purchases or you will get hit hard!

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in the case of you, lets say £600 a month (for calculation purposes im saying £600 from day 1 of each month... and saying you used an amex card at 1.5% cashback

you would earn £9 a month in cashback (£117 per 13 month period)
and savings account (eg santander 123) at 3% which means you would earn amount £136.5 over the year (month one would equate to £1.5, and the final month 13 would go up to £20)

So total gain over the 13 months would be about £253 pre tax and account fees....


(anyone is welcome to evaluate my calculations though!)

Sea_Shell

Thanks for that Plunt. I'd just looked at the 0% side of things, rather than Cashback cards. The Amex deal looks quite good, but i'd be worried that it wouldn't be acceptable everywhere. Do you know roughly what % of outlets accept them?

Have to see if Aldi accept them, as that's the bulk of our spending!!....the rest is Tesco (Fuel) and occasional High Street shopping.

Sea_Shell

No Aldi acceptance , so if you take that spending out of the equation...we might just about qualify for the 1% cashback, as elsewhere prob only £350 per month. The "Everyday" card would be best for us i think.

Food for thought...thanks.

Then you get into the whole TopCashBack stuff too....and my brain starts to melt!!!!

plunt

well dont give up quiet yet... santander 123 card may work better for you then... as it gives you 3% back on fuel and TFL/Train spend. and 2% at department stores and 1% at supermarkets... also give you 0% purchases for 23 months.... (as well as balance transfers which i have used to pay off other credit cards that give me higher cash back on ineligibly spend )

dont forget any fee that apply such as santander charge £24 a year

Sea_Shell

Santander looks good....especially as i've just realised that the fee is waived for 123 current account holders for the first year.

Kendall80

Sea_Shell wrote: »

Santander looks good....especially as i've just realised that the fee is waived for 123 current account holders for the first year.

Which is all well and good til you get to the second year

RetiredDellBoy

My Mortgage company have advised that i can cancel the direct debit and pay by manual credit card payments.

Would this be classed as a normal credit card payment or as something different which i will be charged for?

plunt

What mortgage company. And is this as a result of being late on a payment. I only ask as would love my bank to accept that!

I would be careful to ensure it isn't flagged as a cash advance as that would result in interest accumulating straight away!