Stoozing - Next Step sanity check

Tom_Hendo

Hi All

I am nearly at the peak of my stoozing, in 22 months my mortgage deal comes to an end, and at 6 months prior too that point I want to clear all my stoozed credit.

I have 4 cards, 2 which all last until just before the point id want to clear already. My issue is the 2 cards that 0% ends in September and October this year are my largest balance cards.

Card 1: I plan to get a 0% / 0% BT card for as much of the balance as I can move which should take me 12 months from August/September (exactly what I need). If theres any remaining balance I will clear from savings. 

Card 2: This is more problematic, there isn't any 0% / 0% BT remaining for me to take advantage of, and also it would be very soon after needing the Card 1 solution.

However, my newest card (NatWest 19 month, Purchase&BT 0%) has a 2.99% fee for Balance Transfers. My theory is that if I do this balance transfer at the 2.99% cost, but have that money confirmed at an average 5% tax free saving for the remaining 15 months it would be there, i would offset that 2.99% cost VS just paying off the card and not making anything on that balance. 

Does this make logical sense, or would you just clear it and not pay the fee? I know I could look for a card with a lower % fee, but I think I am nearing the limit that lenders will allow for me, so it would either be significantly under the balance or rejected. 

Thanks, 

kempiejon

Hmm, do the sums. Is the fee and reduced interest that much different to clearing the cards from savings? How much are you really missing out on? If you've got £60k stoozed it's a very different to £6k stoozed isn't it. For a few hundred quid of savings interest is it worthy queering your mortgage application?
Me, I take risks with my money, more than other people I know so I'd try for a few more cards. I recently topped my stooze pot up with soe 12 and 14 months periods and I'm planning to remortgage in 18 months but if you're worried on the impact on the remortgage just wind down the CCs. It's what lets you sleep at night as well as squeaking every last cent from the system.

Tom_Hendo

Its a good point, and for the numbers we are talking about its about an annual difference of gaining a net difference of 1.5-2% on up to £8K so in the grand scheme of it not really a big worry, but I do like maximising whatever I can! 

I will maybe see what I can get on the market before taking the plunge, but if I decide NOT to go for a new card, then its still a net gin of interest at virtually no time or hassle for myself 

Altior

It's quite marginal, so the minimum payment is quite important here. If it's high then it will effectively wipe out a lot of the implied profit, posing the question, is it worth it. 

Tom_Hendo

Altior said:

It's quite marginal, so the minimum payment is quite important here. If it's high then it will effectively wipe out a lot of the implied profit, posing the question, is it worth it. 

Thanks. The minimum payment is 1% so on the low end of the market. It is now at the point where there is minimal benefit so I will probably pass if I cannot get another 0% card. Just for the ease of it to be honest! 

Altior

Tom_Hendo said:

Altior said:

It's quite marginal, so the minimum payment is quite important here. If it's high then it will effectively wipe out a lot of the implied profit, posing the question, is it worth it. 

Thanks. The minimum payment is 1% so on the low end of the market. It is now at the point where there is minimal benefit so I will probably pass if I cannot get another 0% card. Just for the ease of it to be honest! 

1% is nice and low at least. Any fees above 2%, plus minimum payments make stoozing quite thin gruel I feel. Two of my cards are 2.5% mins which really bites into the stoozing balance in the long run. I'll have about 25K left at the end of the calendar year, all deals finishing December. Either to close out, or go in again. Currently I'm favouring closing it down unless an appealing bt deal surfaces.