stoozing with balance transfer fees

Hi everyone,

I'm new to MSE and to Stoozing, the site certainly does make for some interesting reading. Anyways, I was wondering what peoples views were on "stoozing" as described by Martin in his article using balance transfer cards with a fee. In his article he described the use of a good fees-free 0% interest on balance transfer card.

Is it worthwhile if they slap on a 2% fee? it seems there are hardly any credit cards that offer the 0% balance transfer without a fee

Many thanks!
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Replies

  • wayoflifewayoflife Forumite
    281 Posts
    In a word no.. depending on what you choose to invest the stooze money in, and how long the deal is for the profits are negligable

    A much better deal is to stooze with a 0% purchases card, as you can channel your spending through it and reach the limit pretty quickly (obviously depending on your spending)... especially if you have a big purchase that you need to make.

    For the sake of 1 month of 'channeling' it is worth doing this rather than paying a fee

    A car you might want to check out is the & More Credit Card. Here are the benefits:

    - 0% on purchases until January 2008
    - Points earnt on all puchases (converted into M&S vouchers)
    - FEE FREE balance transfers (currently 4.9% for the life)
    - 0% on furniture purchases instore

    I would suggest, as a new stoozer, to do this....

    1) Get the card and just use for the purchases (never bt on this whilst having a purchase balance on here!!!) now this is valid until January 2008 (which is 6 months by the time you get it)

    2) Channel your spending until you have reached the limit

    3) Stooze this amount

    4) Pay the minimum payment each month I would suggest by direct debit

    5) In January you have 2 options Pay the balance off then either...

    use as a 'normal' card i.e. pay of in full every month, therefore avoiding interest.

    Use the BT method, with an EGG card (see Martins tips, or if you cant find it I will explain this)

    Either way you will have earnt money which is much better than stoozing and paying a fee.

    The &More Credit card offers do change, so without a BT fee, it is worth having one of these just for the future offers.

    There are a coupld of things to bare in mind when you are stoozing....

    a) The effect on your credit score... if you have lets say £3,000 on your card then although you are paying off the minimum payment each month you will still have money owing on a card. Take this into consideration when applying for new cards

    b) If you are going to use the balance transfer method at the end of the 0% deal make sure that you ring up during this period (before January) and arrange a credit limit increase, as alot of cards do not let you transfer more than 90% of your credit limit.
    You will also need to apply for an egg money mastercard before January. I would suggest applying 2-3 months after you get the &More card


    let me know if theres anything you dont understand.....
    INCREASE INTEREST ON SAVINGS!

    ...I will thank you if youve been helpful, please do the same! :j
  • ajaxgeezerajaxgeezer Forumite
    2.5K Posts
    Forumite
    Of course Wayoflife is right in what he says, but I'll go the other way.

    Yes, it's worth it, if you consider circa £200 per card "worth it". Some people do, some don't. I take the attitude that profit is profit, so why not?

    For example, if you found a 13month 0% BT card you'd get 12 months of saving (with a break at each end). 5k in a 6.3% savings account would reap £315 interest. 2% fee is £100, leaving £215 profit for nothing. If you pay tax at the basic rate of course your £315 comes down to £252, making only £152 profit.

    There are other factors such as the lessening of the debt (and therefore the amount saved) which varies from card to card, and whether you have your Mini Cash ISA allowance to use but this is it put simply. Do you want the approx £215/£152?....... I do!
  • bigstoobigstoo Forumite
    31 Posts
    Debt-free and Proud!
    Sometimes the principle of getting something for nothing off the credit card companies is enough. ;)
  • ajaxgeezerajaxgeezer Forumite
    2.5K Posts
    Forumite
    bigstoo wrote: »
    Sometimes the principle of getting something for nothing off the credit card companies is enough. ;)

    ... lol how true.
  • wayoflifewayoflife Forumite
    281 Posts
    I think that the ongoing issue of whether it is worth it still remains,

    what I try and do is just look at it over a yearly period.

    e.g. a cashback card of 1% on purchases, ok its only 1p for every pound but ageravge spend per month £800.00= £8.00 per month x 12= £96.00
    Then work out what you could buy for that, like a nice meal for 2...a weeks worth of shopping...is it worth it for nothing?

    If this doesnt seem worth it once you have done this then dont bother but most of these things when you look at it like this do

    I think its more the attitude and indeed 'way of life' to spending, if you are like this with smaller things then you will end up trumps with other things
    INCREASE INTEREST ON SAVINGS!

    ...I will thank you if youve been helpful, please do the same! :j
  • ajaxgeezerajaxgeezer Forumite
    2.5K Posts
    Forumite
    wayoflife wrote: »
    I think that the ongoing issue of whether it is worth it still remains,

    what I try and do is just look at it over a yearly period.

    e.g. a cashback card of 1% on purchases, ok its only 1p for every pound but ageravge spend per month £800.00= £8.00 per month x 12= £96.00
    Then work out what you could buy for that, like a nice meal for 2...a weeks worth of shopping...is it worth it for nothing?


    I think its more the attitude and indeed 'way of life' to spending, if you are like this with smaller things then you will end up trumps with other things

    ...exactly. OP, only you can decide if it's worth it for you. Same with the Tesco credit card, for an £800 average monthly spend I get 400 extra clubcard points. Some people wouldn't look twice at it, but for me £16 free per month in Tesco Deals is the first £192 (16 x 12) toward my holiday every year.
  • thanks for the replies guys.

    Wayoflife, so do you mean in your post, reach the spending limit on the 0% purchases card and then once this has been achieved, transfer a similar amount of money into a high interest savings account?
  • ajaxgeezerajaxgeezer Forumite
    2.5K Posts
    Forumite
    happysacs wrote: »
    thanks for the replies guys.

    Wayoflife, so do you mean in your post, reach the spending limit on the 0% purchases card and then once this has been achieved, transfer a similar amount of money into a high interest savings account?

    .... ideally it would be as you go along - instead of paying off the balance (edit: ensuring to pay off the minimum amount of course), put it in a high% hassle-free savings account and then either transfer that or pay it off, depending on what circumstances suit you.

    Sorry to speak for you wayoflife.
  • BokkensBokkens Forumite
    505 Posts
    Wayoflife; has advocated the Slow stoozing method and ajaxgeezer; has mentioned the Fast stooze.
    Most people reconmend starting off with the slow stooze until you have all the relevant savings accounts/credit cards/mule cards and ISA's etc in place and having gained a little experience then move on to the Fast stooze .
    Personally I use both and constantly look out for any stoozing opportunity. Getting the money off the credit card companies is just part of the fun .
    Aim to pay no interest on anything you buy and stooze as often as you can quite often you just need some lateral thinking to make the stooze work.
    Good luck.
    Previously known as Bokken,registered at MSE in Nov 04,computer glich deleted my access but it is fun building up my stars from scratch,again.:D
  • wayoflifewayoflife Forumite
    281 Posts
    happysacs wrote: »
    thanks for the replies guys.

    Wayoflife, so do you mean in your post, reach the spending limit on the 0% purchases card and then once this has been achieved, transfer a similar amount of money into a high interest savings account?

    Ajaxgeezer has already got this one covered happysacs hes rite, but I would suggest to you that you transfer the amounts as you go along when you are first starting out, so you know where you are, otherwise you could easilly find yourself with a £2,000 bill and get the money you were going to tarnsfer mixed up with something else due. etc

    so yes spend on the 0% purchase card
    as you are spending transfer amounts into a savings account

    hope this helps
    INCREASE INTEREST ON SAVINGS!

    ...I will thank you if youve been helpful, please do the same! :j
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