Quick way to create debt

surreysaver

Fingerbobs said:

Juno_Moneta said:

I’ve stoozed for years and have found a few crafty routes to ‘generate debt’ - basically paying for things in advance I would have to eventually pay anyway. 

So the first that most don’t think about is your council tax. Most authorities allow card payments ( not Amex usually ) so instead of a monthly direct debit just make an annual card payment. That’s a large amount (2k?) ready for stoozing. 

And linked to your home again - energy bills. My supplier EON is more than happy to let me credit my account to be used against future bills. So there you go send 1k into your energy account. 

Easy to build up a good amount to stooze if you use your imagination. 

I don't really see much advantage in doing this. By paying the lump sum up-front instead of the monthly payments, you're losing out on interest that you could have earned on the remaining monthly amounts. You're not gaining anything by creating the debt. You've effectively borrowed money at 0%, and given it to the council or a utility company. The point of Stoozing is to borrow money at 0% and keep it yourself to earn interest on it. Unless I've missed something?

The advantage is, if you've got a 0% purchases credit card, with a credit limit you're not going to use anyway, you're making use of it. You're not losing out, you're giving the council/water company or whoever their money up front, but its not costing you anything.
Then every month after that, you gain £500 or however much which you put into savings. Then you can balance transfer that debt around at later dates.

Fingerbobs

surreysaver said:

Fingerbobs said:

Juno_Moneta said:

I’ve stoozed for years and have found a few crafty routes to ‘generate debt’ - basically paying for things in advance I would have to eventually pay anyway. 

So the first that most don’t think about is your council tax. Most authorities allow card payments ( not Amex usually ) so instead of a monthly direct debit just make an annual card payment. That’s a large amount (2k?) ready for stoozing. 

And linked to your home again - energy bills. My supplier EON is more than happy to let me credit my account to be used against future bills. So there you go send 1k into your energy account. 

Easy to build up a good amount to stooze if you use your imagination. 

I don't really see much advantage in doing this. By paying the lump sum up-front instead of the monthly payments, you're losing out on interest that you could have earned on the remaining monthly amounts. You're not gaining anything by creating the debt. You've effectively borrowed money at 0%, and given it to the council or a utility company. The point of Stoozing is to borrow money at 0% and keep it yourself to earn interest on it. Unless I've missed something?

The advantage is, if you've got a 0% purchases credit card, with a credit limit you're not going to use anyway, you're making use of it. You're not losing out, you're giving the council/water company or whoever their money up front, but its not costing you anything.
Then every month after that, you gain £500 or however much which you put into savings. Then you can balance transfer that debt around at later dates.

How is that better than just paying each monthly bill on the 0% credit card each month when it's due? I still don't get it. 

crumpet_man

Fingerbobs said:

surreysaver said:

Fingerbobs said:

Juno_Moneta said:

I’ve stoozed for years and have found a few crafty routes to ‘generate debt’ - basically paying for things in advance I would have to eventually pay anyway. 

So the first that most don’t think about is your council tax. Most authorities allow card payments ( not Amex usually ) so instead of a monthly direct debit just make an annual card payment. That’s a large amount (2k?) ready for stoozing. 

And linked to your home again - energy bills. My supplier EON is more than happy to let me credit my account to be used against future bills. So there you go send 1k into your energy account. 

Easy to build up a good amount to stooze if you use your imagination. 

I don't really see much advantage in doing this. By paying the lump sum up-front instead of the monthly payments, you're losing out on interest that you could have earned on the remaining monthly amounts. You're not gaining anything by creating the debt. You've effectively borrowed money at 0%, and given it to the council or a utility company. The point of Stoozing is to borrow money at 0% and keep it yourself to earn interest on it. Unless I've missed something?

The advantage is, if you've got a 0% purchases credit card, with a credit limit you're not going to use anyway, you're making use of it. You're not losing out, you're giving the council/water company or whoever their money up front, but its not costing you anything.
Then every month after that, you gain £500 or however much which you put into savings. Then you can balance transfer that debt around at later dates.

How is that better than just paying each monthly bill on the 0% credit card each month when it's due? I still don't get it. 

You are not alone, I do not understand how it is better to pay upfront.  One negative is that your minimum payment will be higher and there appears to be no financial advantage

surreysaver

Fingerbobs said:

surreysaver said:

Fingerbobs said:

Juno_Moneta said:

I’ve stoozed for years and have found a few crafty routes to ‘generate debt’ - basically paying for things in advance I would have to eventually pay anyway. 

So the first that most don’t think about is your council tax. Most authorities allow card payments ( not Amex usually ) so instead of a monthly direct debit just make an annual card payment. That’s a large amount (2k?) ready for stoozing. 

And linked to your home again - energy bills. My supplier EON is more than happy to let me credit my account to be used against future bills. So there you go send 1k into your energy account. 

Easy to build up a good amount to stooze if you use your imagination. 

I don't really see much advantage in doing this. By paying the lump sum up-front instead of the monthly payments, you're losing out on interest that you could have earned on the remaining monthly amounts. You're not gaining anything by creating the debt. You've effectively borrowed money at 0%, and given it to the council or a utility company. The point of Stoozing is to borrow money at 0% and keep it yourself to earn interest on it. Unless I've missed something?

The advantage is, if you've got a 0% purchases credit card, with a credit limit you're not going to use anyway, you're making use of it. You're not losing out, you're giving the council/water company or whoever their money up front, but its not costing you anything.
Then every month after that, you gain £500 or however much which you put into savings. Then you can balance transfer that debt around at later dates.

How is that better than just paying each monthly bill on the 0% credit card each month when it's due? I still don't get it. 

It saves the hassle. Financially it doesn't make any difference. Or you might have a 0% purchass rate expiring in the near future, and allows you to balance transfer it to a longer 0% card.
There could be a few reasons why its advantageous