Stoozing have I missed something

judderman62

Hi all

Hope I am using the correct terminology here ie Stoozing.

I have just read something elsewhere on this site that is making me question if I have misunderstood something.

I read that if you have a 9 month zero interest card that when you get close to the end of the 9 months you need to move the balance to another card otherwise you loose all the interest earned.

Now I thought that interest was calculated on a daily basis (or kind of)

OK let me put this in a simpler way that will hopefully be clearer to all.

I have a sainsbutrys credit card that gives me 12 months interest free. Every month I pay the minimum amount and move the difference between this and the balance due into a Nationwide e-account. My intention was when it gets to a little over 11 months I would take the funds from my e-account and pay off all outstanding amount.

The way I read on here suggets I would loose all the interest I would have earned from Nationwide.

is this really true - I would have thought as I had an ever increasing amount, rising to prob at least £ 3000 by month 11, in my nationwide e -account for 11 months that interest would still be earned on this - am I wrong in this ?

Thanks all

Clariman

judderman62 wrote:

I read that if you have a 9 month zero interest card that when you get close to the end of the 9 months you need to move the balance to another card otherwise you loose all the interest earned.

Hi judderman62

OK - let me explain a couple of things. Firstly, stoozing is the name given to the technique of borrowing money from credit cards on 0% deals, saving the money in a bank account and earning the interest on that money. At the end of the 0% period, you pay off the credit card and you keep the interest. Your stoozing 'profit' is the interest that you have earned by saving the credit card issuer's money. OK with that so far ? Hope so. OK let's move on. Rather than pay off the credit card from your savings account, if you can get another 0% card and BT the original debt, then you can leave the money in your savings account (stooz pot) and continue to earn interest on it.... adding to the interest you already have earned.

So to return to your question. Will you lose the interest if you do not find another 0% card to BT to ? No you won't lose it. You have not shown us the text that made you worry about whether this was the case or not so it is difficult to say much more. However - let me take a guess at what you might have caused the confusion....

If you don't pay off the credit card at the end of the 0% period (either from your savings account or by another BT), then you will start getting charged interest in your credit card debt. Once you start paying interest on the debt, it will wipe out the interest that you have earned very quickly. So the moral of the story, is that a stoozer must never get him/herself in the position where they pay interest.

I suggest you take a look at the info in Martin's Revenge article (see above) or at https://www.stoozing.com (which I co-write and Martin Lewis sponsors).

Clariman

YorkshireBoy

judderman62 wrote:

I read that if you have a 9 month zero interest card that when you get close to the end of the 9 months you need to move the balance to another card otherwise you loose all the interest earned.

No, you either pay back the remaining balance from your stooze pot (keeping the interest earned), or transfer the remaining balance to another credit card, ie a balance transfer.

For help with the rest of the issues raised in your post, have a look at the "stoozing" article - accessed from the blue box above. Also, read the "Super Balance Transfer" article. Finally, take a look at https://www.stoozing.com (a site sponsored by Martin Lewis) for step by step guides including flow charts etc. Reading up on these will answer all your concerns.

Worked example:

Obtain Virgin card with £5K credit limit
Carry out SBT from your current account - £4,750 (95%) is sent to your current account to pay off your, ahem!, "overdraft"
Transfer said £4,750 to, say, your ING savings account and make around £16 a month (approx. £150 for the 9 month duration).
Meanwhile, pay back Virgin £5 a month from your "pocket money" for the first 8 months and then...

1/ either give them back £4,710 from your ING account, or

2/ transfer the £4,710 balance to another credit card. NB: apply in plenty of time (6-8 weeks).


Edit: wish I could type faster than Clariman!

judderman62

Clariman wrote:

Hi judderman62

OK - let me explain a couple of things. Firstly, stoozing is the name given to the technique of borrowing money from credit cards on 0% deals, saving the money in a bank account and earning the interest on that money. At the end of the 0% period, you pay off the credit card and you keep the interest. Your stoozing 'profit' is the interest that you have earned by saving the credit card issuer's money. OK with that so far ? Hope so. OK let's move on. Rather than pay off the credit card from your savings account, if you can get another 0% card and BT the original debt, then you can leave the money in your savings account (stooz pot) and continue to earn interest on it.... adding to the interest you already have earned.

So to return to your question. Will you lose the interest if you do not find another 0% card to BT to ? No you won't lose it. You have not shown us the text that made you worry about whether this was the case or not so it is difficult to say much more. However - let me take a guess at what you might have caused the confusion....

If you don't pay off the credit card at the end of the 0% period (either from your savings account or by another BT), then you will start getting charged interest in your credit card debt. Once you start paying interest on the debt, it will wipe out the interest that you have earned very quickly. So the moral of the story, is that a stoozer must never get him/herself in the position where they pay interest.

I suggest you take a look at the info in Martin's Revenge article (see above) or at https://www.stoozing.com (which I co-write and Martin Lewis sponsors).

Clariman

Thanks for the reply - I just tried quickly n briefly to find what I'd read but to no avail. I may take another look when I get a minute - but it wasn't the above one you took a guess at :-)

Thanks for the reply and reassurance

J

judderman62

thanks for the quick and very comprehensive replies chaps love this forum