Don't go full fat just rinse a few 0pc offers.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Personally, I think I would just pay off the lump sum at the end of the interest free period. Rather than balance transferring. Most gain for least amount of work.
Do you not have a finance spreadsheet to keep track of your accounts?
No I’ve not missunderstood the task at all. For the task to work and not fail you very much have to be able to service the debt. If you don’t have sight of that then you are much more likely to fail.
If you can’t afford £250/£500/£1000 per month then you can’t afford it, regardless of if that is to put in savings of spend on mmp’s, so if you can’t afford that then you can’t service the debt.
I wouldn’t call £900 a month a minor flaw to over look when the impact of screwing that up just once can remove the entire benefit of stoozing.
Soldato
OK just proportionally for my income it's not significant. The 900 figure you've taken is 600 off an account that I would use for grocery expenditure also so you'd have that going weekly/monthly anyway.
If someone's income was a lot lower then yes maybe an issue. If you are semi competent and/or reasonable income to outgoings or save a lot it requires minimal thinking.
In 10 years I've not had any issues but like all things in life your mileage may vary.
It works very well if you've got a high income /good budgeting and or use it to offset high cost items (eg car purchase, house renovations).
How would that help? I see interest on gilts is taxable as income?
I wouldnt call the equivalent of the UK average mortage payment insignificant for the average person. Granted you are fine, i would be as well, but it is important to discuss these things when talking about stoozing and how it really isnt as straight forward as just build up **** loads of CC debt on interest free cards and lolz free money!
A new car upgrade soon might make this an option rather than buying outright it might be worth finding a card to pay for it on.
Soldato
Your missing it. Say you get a 3 month card (silly short term to just talk through a simple example).
Month 1, you spend £1000, you save £1000. You would have had to pay the £1000 off via debit/normal credit card so you have £1000 more free cashflow than not using the 0% card.
Mnoth 2, you spend £1000, pay £50 in minimum payment. Save £950. Net debt £1950, net savings £1950
Month 3, you spend £1000, pay £100 minimum, save £900. Net debt £2850, net savings £2850.
Month 4, you close the savings and pay the debt.
At some point you will gain interest on the amount that sat in savings.
An extreme example would be where your minimum payments were matching your spending. At that point your net savings is unchanged, your net debt is unchanged.
But, you would have a large amount in savings matching your net debt. (Plus of course at some point interest getting added).
If above £1000 was monthly spend and minimum was 5% then you could have 1000/5% = £20k of debt interest free whilst the same £20k was earning interest in savings.
Unless you had strange spending habits its basically impossible for your outstanding debt to require minimum payments above the amount you would have had to pay if you were not using the 0% card.
Low coupon, the interest is very small and most of the gain is a capital gain which on gilts is tax free.
Soldato
Yeah I track everything so could easily make it work. I'll look at it again.
Soldato
It does not require that you have an income, and when i stoozed it was when i was 16 or so, on my dads cards, then on my cards when i was 18, ending at 2009 or so.
I was unemployed the entire time.
You simply withdraw the money from savings to have enough for minimum payments, and try to increase overall debt with new cards continuously.
Let's have an article on why rates have crept up again lately then
Why mortgage rates are going up, not down
The cost of a new fixed mortgage has risen in recent days, defying many homeowners' hopes and expectations.
www.bbc.co.uk
Soldato
Swap rates on the rise again .Let's have an article on why rates have crept up again lately then
Why mortgage rates are going up, not down
The cost of a new fixed mortgage has risen in recent days, defying many homeowners' hopes and expectations.www.bbc.co.uk
I'm still hopeful of a 0.25 drop in June or July . Richie fulfills his promise of lowering interest rates , stopping the boats and lowering inflation where upon he then calls a general election .
And they go back up later in the year when the city looses any faith in labour government. Just after a tax raid on pension pots.
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Erm what???
If you have no income and are spending money on interest free cards, where is the money that you are putting in to savings coming from?
He had the cash to cover the expenses in his current account. He chose to spend on the cc. This really isn't complicated dude
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He had the cash to cover the expenses in his current account. He chose to spend on the cc. This really isn't complicated dude
He’s picking up on the fact that this 16 year old with no income somehow has savings to make the minimum monthly payment from, while at the same time lowering the interest he’ll get from those same savings which defeats the entire object of the game.
Soldato
I did it via money transfer in those days, but my main point is that "servicing the debt", is not relevant ,that only applies if you spend the money, with stoozing you are not spending the money, you are taking it and putting it in savings to earn margin.
The minimum monthly payment will still leave plenty in savings for it to be worthwhile. I can either spend 5k today or ~2k (minimum payments total) over 2 years and then clear it all at the end.
How the 16yo got the money in the first place is irrelevant to stoozing.