Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Many balance transfers are free. I've never paid a fee on one.
I don't think you're getting it. Minimum monthly payment never clears balance in the interest free period. I pay maybe £140 on my M&S card to them, and put £300 into my savings.
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I never said anything about the minimum monthly payment paying off the balance.
I don’t think you are reading what I’m actually saying because you haven’t actually address the points I’m making.
I'm not sure what your point is tbh.
Fair fair, if the balance transfer is free, and you’ve had a reason to spend the money, and the ability to put the money you would have spent in to savings it does make sense as a method to generate free money.
However if you don’t have the capacity to save the same as you are spending, you aren’t making free money, you are just making free debt, that in the long term needs to be cleared no matter how far down the road you kick the can with balance transferring.
Its only stoozing if you have the equalvient balance in savings earning more then the costs of the debt.
I've done this in the past but the deals are getting rarer and rarer.
I compare it like this:
Bank loan:
Stick the £10,000 in a good fund and you could make £750 over 18 months, but you'll still have to service the payment each month so the amount invested will go down (unless you use another source).
One caveat I would make is don't do it if you're looking for a mortgage or remortgage as the bank may look unfavourably at it.
I compare it like this:
Bank loan:
- Borrow amount - £10,000
- Term - 18 months
- Monthly payment - £583.31
- Cost of borrowing - £499.60
- Total repaid - £10,499.60
- Borrow amount - £10,000
- Term - 18 months
- Monthly payment - typically 3% of the balance each month
- Cost of borrowing (Fee for Cash Transfer) - 3.3% of amount borrowed, so £330
- Total repaid - £10,330
Stick the £10,000 in a good fund and you could make £750 over 18 months, but you'll still have to service the payment each month so the amount invested will go down (unless you use another source).
One caveat I would make is don't do it if you're looking for a mortgage or remortgage as the bank may look unfavourably at it.
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Because you’ve not read my posts properly. I asked what the purpose of having such high credit card debt is, and have been discussing the mechanism of getting there.
That is ... just... spending money and making debt.
The cost of the debt is free if you spend on 0% CC.
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If you are spending money on the credit card you have to be saving the money in a savings account at the same time, correct?
So it’s not just about spending money, you have to be saving as well….
Well yes that's what everyone has been saying
Well no infact no one said that but me, which is what I was trying to get to the bottom of!
So for your average spender who wants to start this you should calculate a budget you can afford for total minimum monthly payments (MMPs) you are happy to make.
Call it £250 (savings budget /SB) which will equate to 1% of £25k
Then you need a 0% purchase credit card/s that allow you to get to that £25k.
While you are building up the £25k, every month you save the difference between current MMPs and your SB.
For every £$€¢¥ you spend on the CC you MUST also put that same amount of money in to a savings account.
Then to extend the potential of the stooze you need to make sure that wherever you are saving the money equates to more then it will cost to move the money around due to fees.
I can see the benefits but it’s not an overnight flip switch process that’s for sure.
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I have no idea what you are talking about. I already gave my example but to reiterate:
1. I sign up for a 0% card
2. I put any spend I want on the 0% card
3. Each month I divide balance by remaining 0% period
4. I then pay minimum payment
5. I put the delta between my calculation from step 3 into a 5% account
6. At the end of the interest free period I have a CC balance of X at 0% and a savings balance of X at 5%. I can either call it quits here and take my bounty, or find a BT. At this stage on 5% I am making £25/mo or £300 a year. I also have £6k liquidity.
No one said it was. But overtime you can end up with a decent amount on 0% and with 5% savings it could be a decent earner.
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Yeah.
You spend naturally on a 0pc card.
You therefore obviously have the same amount to save.
You accrue 10k of debt at 0pc
You put exactly what you would have spent in a 5pc saver.
You have 5pc that you wouldn't have other wise
You spend naturally on a 0pc card.
You therefore obviously have the same amount to save.
You accrue 10k of debt at 0pc
You put exactly what you would have spent in a 5pc saver.
You have 5pc that you wouldn't have other wise
I've also started to stooze...this year should earn me £600 in "free" money
true. it's stuff i would have spent money on anyway. but better to have it on what is, essentially, an intrest-free loan...and have the money sat in my savings account/flexi-cash ISA earning 5-7%
When you say you started, I’m curious when did you start and how quickly did you get to the £12k (assuming 5pc savings rate)?I've also started to stooze...this year should earn me £600 in "free" money
8.5k solar PV system is the main one. then a TV etc and home electronics put it to £12k
the interest free period is 19 months and i have a £20k limit so will put all my living expenses/discretionary spending on the card as well over the next 19 months
can't beat an interest-free loan lol