Is today the day stoozing died?

Options
13567…10

Comments

  • rodent
    rodent Posts: 292 Forumite
    Options
    studentpillock wrote: »

    Every couple of days I add up the total spent on my cards and move it from the current account into a savings pot. Both are linked to the mortgage so it doesn't matter where the money is, it's still offsetting the mortgage capital. When the cc bill arrives I pay it off in full with the money from the savings pot.

    It would make more sense to pay the whole balance from current acc directly into "savings pot" immediately upon receipt ..rather than waiting until you have "spent it" bit by bit on cc ??
    Please exolain logic behind not doing this ?

    The Rodent
    My posts are my opinion which is neither right nor wrong.
  • Mutton_Geoff
    Mutton_Geoff Posts: 3,819 Forumite
    Name Dropper Photogenic First Post First Anniversary
    Options
    Please exolain logic behind not doing this ?

    Probably SP's method of keeping on top of his spending and a good reminder that credit card debt is still real money. My guess is his loan is with Woolwich/Barclays who call the separate accounts "pots" but they all still offset against the mortgage debt so there is no disadvantage in moving the money and probably a lot of advantages to SP as he now considers it "spent". A good system.
    Signature on holiday for two weeks
  • Bob_Terveuren
    Bob_Terveuren Posts: 39 Forumite
    Options
    Mutton_Geoff wrote: »
    Please exolain logic behind not doing this ?

    Probably SP's method of keeping on top of his spending and a good reminder that credit card debt is still real money. My guess is his loan is with Woolwich/Barclays who call the separate accounts "pots" but they all still offset against the mortgage debt so there is no disadvantage in moving the money and probably a lot of advantages to SP as he now considers it "spent". A good system.

    Hi
    This is exactly what we do with our Woolwick aka Barclays mortgage. Grab a 0% card, slap all possible spending on it and, every other day or so, check the card balance and transfer the appropriate amount from the 'current account' to the 'credit card' pot.

    You can very quickly run up several grand on a new card (currently it's Capital One on 12 months 0% and a £6K credit limit - we're at £5,500 on that since September - including beer, car parking, insurance, yadda yadda) and there it is - offset against the mortgage. Get close to the credit limit, wait a few weeks, ring them up and (usually) you can get a few more grand added.

    Whilst this is perhaps not the best return (our interest rate is base plus 0.75% tracker) it is fairly 'safe' and the 'current account' shows your correct balance to hand without any mental arithmetic.

    Works for me

    BT
    Bob Terveuren :D
  • benood
    benood Posts: 1,398 Forumite
    Options
    If Stoozing hadn't died last month the latest 1% cut has killed it for me - I was going to set up a virgin card to take over from a Barclays 0%er which expires in Feb - but the 2.98% fee and negligible interest rates available just don't make it worthwhile as an arbitrage opportunity for me anymore.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    Options
    benood wrote: »
    negligible interest rates available
    You didn't take up the (fixed for a year and unlimited deposits/withdrawals) Egg 6.30% offer then?

    Or one of the Halifax fixed for a year offers at 5-6% (max 4 withdrawals would have covered 4 stooz cards if minimums paid from elsewhere)?

    Or one of the 3/6/9/12 month Halifax fixed for term accounts at up to 7%?

    I'm geared up for 6.30% until July, and 5% until next December, so might be able to take the odd deal or two.

    However, I agree that if things don't change soon, ie a return to fee-free BT's, then fast-stoozing will have to be placed on the back burner for a while. Hang on to those high limit cards known to give good repeats (ie MBNA) though, because there might be some offers around for existing customers in the New Year.
  • LongTermLurker
    LongTermLurker Posts: 1,996 Forumite
    First Post First Anniversary Combo Breaker
    Options
    YorkshireBoy wrote: »
    You didn't take up the (fixed for a year and unlimited deposits/withdrawals) Egg 6.30% offer then?
    You gloating YB? ;)

    I calculate my "average" interest rate at about 7.61% gross/AER and my last good deal expires next November.
    You've never seen me, but I've been here all along - watching and learning...:cool:
  • benood
    benood Posts: 1,398 Forumite
    Options
    YorkshireBoy wrote: »
    You didn't take up the (fixed for a year and unlimited deposits/withdrawals) Egg 6.30% offer then?

    No - not such a committed Moneysaver I guess - in any case the savings on a lifetime +.24% base rate tracker knock anything I was gaining from stoozing into a cocked hat (my gloat topic!;) )
  • Richard019
    Richard019 Posts: 460 Forumite
    First Post First Anniversary Combo Breaker
    Options
    (sorry if this sounds patronising, the detail is more for clearing the idea in my head) Surely the current short term way for small stoozers (£5k-8k or so) is to do this combination of things:

    1) ISA
    2) A+L Current account (the online only one) with guaranteed 8.5% interest on £2.5k for first year
    3) Abbey (it's hardly going to be active day to day) current account with guaranteed 8% (or is it down to 6%) on £2.5k

    2 and 3 both need to be done as a switch from an existing account, but if you've already got 2 current accounts it's not that difficult and with Nationwide's current account being good for holiday spending it's not unrealistic to think people would have 2. (I did for budgeting when I first bought my own place)

    Leave wages and essential bills going into your main account. Set up a standing order for just after payday to go into your 2nd account and move a few of your less important (ie not mortgage) direct debits to it.

    You've then got money in and money out so a switch to A+Ls account shouldn't be a problem. Once that's in place return the standing order and the direct debits to your old 2nd account and get the Abbey account. Eventually returning them to your main account (This is obviously more efficient if you have more than 2 accounts to start with)

    Once you've got both accounts up and running you can deposit £2.5k into each of them and set up a standing order for £1k for the 1st of each month to go each way.

    You'll lose a few days interest on £2k each month but you've then got it all at 8.25% gross average (or 7.25% gross if the Abbey is down to 6%) for the best part of a year. If it's a 12 month BT then you'll only want it in there for 11 months anyway so the loss of time at the start might not be important.
  • tinkerbell84
    tinkerbell84 Posts: 5,323 Forumite
    Options
    We're stoozing more than ever, and putting it against our offset mortgage. 9.2% equivalent savings rate :beer:
  • Strapped
    Strapped Posts: 8,158 Forumite
    Options
    With our offset mortgage, you can have linked accounts in other people's names. It is almost becoming viable to "pay" family to put their £££s against our mortgage since we can "pay" them the same rate as they are getting elsewhere but receive a greater credit against the mortgage. (Admittedly only just but if rates fall still further and deals dry up this could be a good option all round). :cool:
    They deem him their worst enemy who tells them the truth. -- Plato
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards