Stoozing: Make Free Cash from Credit Cards article discussion

byrnea

I have stoozed a bit and added to savings in an offset as I am a high rate taxpayer it seems to offer better overall return than most other things.
I have remained relaxed about theprospect of any issue with the bank as effectively, through the mortgage, I owe them more than they owe me.
Anyone have a view on that?

JimmyTheWig

I am generally a strong advocate of stoozing (my wife and I are currently stoozing 4 cards between us) but I forsee a potential problem.

What if the bank that holds your savings account goes bust? Assuming that you stick to within the £50k per institution you'll get your money back, but it will probably take at least three months. What if your 0% deal runs out in that time?
Would it be safest, for example, to pay off a 15 month 0% deal after 12 months just in case?


Jim

Clariman

There is a fair bit of discussion on this on the savings board on the stoozing website

Strudlehoffer

I've read this stoozing thing and I'm confused, I've just been offered £8600 by Virgin Credit card
Am I right in thinking that if I get £8000 into my bank account using the cheques I'll be charged £240ish due to the 2.98% fee
and if so, is it still worth doing the whole process??

rachaelamy

I have actually had a very bad time from this stoozing. I took almost £7000 from an MBNA card and put it with Icesave. Now you can guess what's coming, it needed to be paid this month so now I can't repay it until I have my compensation payment from the Government; meanwhile I cannot possibly pay it in full, so I will now lose HUNDREDS of pounds which I haven't got in interest payments. Also, if Alistair Darling hadn't said he'd pay the first £20000 that Iceland had promised I may never have seen that money again, and I would have nothing at all to show for a massive debt that I cannot afford. Stoozing should not be being recommended at the current financial climate.

rodent

rachaelamy wrote: »

I have actually had a very bad time from this stoozing. I took almost £7000 from an MBNA card and put it with Icesave. Now you can guess what's coming, it needed to be paid this month so now I can't repay it until I have my compensation payment from the Government; meanwhile I cannot possibly pay it in full, so I will now lose HUNDREDS of pounds which I haven't got in interest payments. Also, if Alistair Darling hadn't said he'd pay the first £20000 that Iceland had promised I may never have seen that money again, and I would have nothing at all to show for a massive debt that I cannot afford. Stoozing should not be being recommended at the current financial climate.

Sounds to me like the best possible rescue solution is to carry on stoozing .....get another card and bt the 7K to another 0% deal.Simple.

I personally do not keep cash invested with "high" int rate savings accs; first because the returns are pitiful and second, as you have clearly highlighted, it is at far to much risk.

I buy property (at the right prices!) and resale stock, to make much higher less risk profits. Stoozing is great as long as you understand it properly.
I have anything upto 250K stoozed most of the time...

The Rodent

JimmyTheWig

rachaelamy wrote: »

if Alistair Darling hadn't said he'd pay the first £20000 that Iceland had promised

That was always going to be a potential risk with an account not fully backed in the UK. This risk has always been highlighted here when the savings account had been mentioned.

rodent wrote: »

Sounds to me like the best possible rescue solution is to carry on stoozing .....get another card and bt the 7K to another 0% deal.Simple.

I agree with this. As long as your credit rating hasn't taken a dive you should be able to get another 0% deal.

I personally do not keep cash invested with "high" int rate savings accs; first because the returns are pitiful and second, as you have clearly highlighted, it is at far to much risk.

I buy property (at the right prices!) and resale stock, to make much higher less risk profits.

Rodent, while what you do obviously has worked for you, you either need to explain exactly how you invest in something that has higher returns but less risk than something backed by the UK government (e.g. a savings account) or stop suggesting that people do it. The risk is that someone will try to emulate you and get it wrong...

rachaelamy

that's all very well everybody, but how on earth could I forsee what was going to happen? I actually saw no warnings about this when I took the card out 12 months ago. I was simply saying what had happened to me in this instance so that other people were aware of it. Also, because I still owe the money on a credit card and also have loans, I cannot get another credit card. I've tried. And I have no where near enough money to buy property!

JimmyTheWig

rachaelamy wrote: »

that's all very well everybody, but how on earth could I forsee what was going to happen? I actually saw no warnings about this when I took the card out 12 months ago. I was simply saying what had happened to me in this instance so that other people were aware of it. Also, because I still owe the money on a credit card and also have loans, I cannot get another credit card. I've tried. And I have no where near enough money to buy property!

That's a shame that you can't get more credit.
Have you got a partner who could apply for a new card and transfer the balance to that?
Or a parent or someone who could lend you the money in the short term?

The good news is that, according to today's weekly email, FSCS should be paying out in November so with a bit of luck you won't take that much of a hit.

Remember to continue making the minimum payments. If interest is being added the minimum might go up.

rodent

JimmyTheWig wrote: »

Rodent, while what you do obviously has worked for you, you either need to explain exactly how you invest in something that has higher returns but less risk than something backed by the UK government (e.g. a savings account) or stop suggesting that people do it. The risk is that someone will try to emulate you and get it wrong...

See www.stoozing.com where i have put up >1000 posts detailing approaches and activities !

The Rodent