Stoozing: Make Free Cash from Credit Cards article discussion

Frugaldom

I've not had much response to my question so am stabbing a guess at this. The way I see it, you empty the 0% credit card by transferring it to your err.. "overdraft" and then move the lump sum from your "overdraft" to a high interest account. You then start making the high interest on the lump sum whilst taking the 0% term to make the minimum payments on the card. Once you get close to the 0% ending, you apply for another 0% card, pay the 2% or 3% to transfer the debts and you still have the original lump sum accruing high interest in your ISA or HI account. Please someone correct me if I am wrong? I'm assuming that each time you switch the balance you will have the chance of even more credit. If I have this all wrong then someone say something soon as I don't want any nasty surprises. :eek: It all looks straightforward enough and if, for any reason, you can't get a 0% card to balance transfer or everything goes pear-shaped, you always have the lump sum lying in your account. I think the main thing to remember is DO NOT SPEND IT and don't use the 0% interest card for anything else - use a different one, with cashback, if you can get it. Yes? Anyone? What if I've got it all wrong? :rotfl:

dee100

Yes, you must arrange minimum payments by direct debit, that's all I know....

Frugaldom

andyuk2005 wrote: »

1 more thing (hehe!), to my understanding (please correct me!), you can transfer a positive balance to any savings account from your Egg card, but I assume you can't transfer the interest free credit on that Egg card to a savings account? I thought it didnt quite mention this in the article, otherwise there would be another huge amount available to Stooz!

Egg lets you balance transfer to your (current account) overdraft And allows you the same priviledge every anniversary. I read their site as only being able to do this for the first couple of years you have the card, but I've been able to do this every year since 2002 :cool: If only I'd been able to avoid spending during that time!! Still, it beats paying interest and I've grown quite attached to my (nest) Egg now :rotfl:

YorkshireBoy

andyuk2005 wrote: »

1 more thing (hehe!), to my understanding (please correct me!), you can transfer a positive balance to any savings account from your Egg card, but I assume you can't transfer the interest free credit on that Egg card to a savings account? I thought it didnt quite mention this in the article, otherwise there would be another huge amount available to Stooz!

Be very careful not to confuse Egg Money (which the article talks about) with the Egg Card (Visa).

If you have a positive balance on the Egg Card (Visa), and have a 0% introductory offer, you WILL be charged a 3% fee for moving money from your positive balance to your current account.

Frugaldom

YorkshireBoy wrote: »

Be very careful not to confuse Egg Money (which the article talks about) with the Egg Card (Visa).

If you have a positive balance on the Egg Card (Visa), and have a 0% introductory offer, you WILL be charged a 3% fee for moving money from your positive balance to your current account.

Can someone explain the difference between Egg Card and Egg Money and are there any cards that offer a completely free balance transfer onto a 0% interest rate?

srvr

Hi

This whole stoozing thing sounds great and i think the superbalance transfer would be best for me but i cant get my head around a few things that i feel is'nt addressed clearly by the calculator.

Say i balance transfer £5000 @ 0% for 12 months i would earn in a basic rate tax account £256. That bit i understand.

Hoever the balance transfer fee on most cards would be about 3% i saw one recently so thats £150 reducing my profit to £106 which is still nothing to be sniffed at.

However i also need to make minimum payments of say 2% per month starting at £100 and decreasing over time. This would mean that month on month the amount of money in the savings account would decrease wouldn't it? So the interest earned figure would be less and i would have to ensure that i chose an account that paid interest monthly or daily. This would also reduce my profit from £106 down by a figure my brain doesn't want to calculate and when you knock another month of as advised by these boards to allow for the admin period thats another hit but i guess is would be hopefully no less than £75.

How on earth do i work out the true cost of stoozing?

Clariman

If you do a google search for "official stoozing calculator" you'll find a pretty accurate one that takes into account BT fees, minimum payments and your tax band etc.

Clariman

danthemoneysavingman

nykmedia wrote: »

Can someone explain the difference between Egg Card and Egg Money and are there any cards that offer a completely free balance transfer onto a 0% interest rate?

Egg card is a pure credit card.
Egg money (aka egg blue) is more like a charge card.
egg money is needed for 'fast' stoozing from credit cards where you can't "transfer money to your bank account [overdraft]"
ulster bank offer a 6mths no balance transfer fee card
capital one currently offer a 0% BT fee 0% card (on their website - thnx YB:D )
if you're not getting it, read the stoozing intro guide again!
check out stoozing dot com too, very useful resource.

Runningman_3

Hi all.

This is my first time on a forum; ever, so hopefully I'm doing this right. All seems straight forward regards stoozing apart from one thing.

I am potentially looking to stooze 21k and put this away in an account paying a reasonable amount of interest, around 6.5%. The 21k will be split between egg card and virgin c/card on 0%, both longer than 12 months, leaving a positive balance on my capital one card. I believe they will then transfer the 21k to me as a cheque.

With regards making minimum payments I don't really want to make these from the 21k as this will reduce my potential profit. The amount of minimum payment is going to be around £400 per month so I suppose I will need to have a surplas fund somewhere to fund these payments. Is this correct or am I as thick as I feel right now?:A

YorkshireBoy

Runningman wrote: »

Is this correct ...

I think you need to read the article again (have you already?).

Also, asking for a £21K positive balance refunding from anywhere by cheque is bound to alert their AML team.