Mortgage Rate Rises
- Thread starter glenimp617
- Start date
They aren't cash transfers, it's a balance transfer. Even balance transfers have got worse recently but there's zero fee 0% Apr examples here
Balance transfer credit cards
If you're paying interest, see if you can transfer your debt to a 0% deal. See Martin Lewis' top pick balance transfer credit cards.www.moneysavingexpert.com
I have been doing this for 10 years no issues.
Your point 2 doesn't consider the point I made previous re: purchase cards
3) there are plenty cash ISAs offering circa 4 to 5%
Same.
I've got a mix of BT and purchase cards.
For example I'll be putting my 3k holiday straight on one.
All my shopping etc. Didn't take long with a holiday, some bills etc to get one card to 6k.
Then just bounce that around.
Hoping to chop mine down to 6k after the van is bought. But again. Better than a loan.
Last edited:
What comparison are you making? No-one is saying don't save as well. This is new free money. There is no way it can't be beneficial.
Soldato
Yeah it was only this year that I've ever paid a fee but still 4to 5% interest is better than say a 1% fee. If the fees go up crazy ill just pay them off. If they're less than the interest im tempted to keep some amount as ill probably buy a 20k (ish) car soon and means I wouldn't need a loan.
If you are balance transferring it’s not free.
If you’re spending money on a CC instead of spending cash then you need to be putting that cash in to savings at the same time, other wise you are just creating debt. Add to this the slowly increasing your minimum monthly payment but always had the capacity to pay that minimum monthly payment then you are already saving the minimum monthly payment about.
So once you’ve built up a balance of your so called free money to a point where the minimum payment matches your monthly savings contributions you are no longer saving money and have a balance of debt offset by a savings balance.
If you can afford £500 in monthly minimum repayments from day 1, you can be saving £500 from day 1.
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.
Last edited:
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.
Last edited:
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.
Last edited:
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.
Last edited:
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.
Last edited:
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