Stoozing: Why Borrow Money on a Credit Card Just to Save It?

As a seasoned credit card user, I've discovered an unconventional way to save money by leveraging the power of 0% interest rates and promotional expiration dates.

I do my bigger spends as and when required on a 0% card, so I don't need to use savings. Then, I pocket the interest, which has become a lucrative habit for me. The golden rule is to have the savings to cover each spend!

Averaging around £75 a month, this strategy allows me to earn passive income without breaking the bank. My personal favorite is when the Credit Card and Savings are with the same bank – they're literally paying me to borrow their money.

The Benefits of Stoozing

With 48k available credit cards and a balance of around 16k, I've been able to stooze and save significantly. By using offset mortgages and transferring balances to savings accounts, I've reduced my monthly payments by £350.

This strategy might not be for everyone, as it requires discipline and attention to detail. However, the potential rewards are substantial – I'm aiming to pay off my 8k balance in 18 months and have started exploring ways to invest the interest earnings.

Personal Experiences and Tips

I've been fortunate enough to have a windfall that allowed me to pay off my mortgage. The experience taught me the importance of communicating with financial advisors and ensuring they understand your goals.

Mortgage advisors often focus on the risks associated with credit card debt, but I believe it's essential to present a balanced view. By leveraging 0% interest rates, you can earn rewards and save money without being penalized for having 'bad' debt.

Stoozing Strategies

One of my favorite stoozing strategies is using two credit cards with billing periods that overlap by half a month. This allows me to spread out the interest-free period, making it easier to manage larger purchases.

I also use a credit card trick where I transfer money from one card to another every few months. This technique helps me maximize my rewards and avoid missing promotional expiration dates.

Risks and Considerations

Stoozing can be stressful, especially when managing multiple balances and ensuring timely payments. It's essential to weigh the benefits against the risks and consider your individual financial situation.

Mortgage affordability checks are a crucial aspect of stoozing, as credit card companies apply their own short repayment figures. It's vital to clear your stooze balance before these checks to avoid being rejected for additional borrowing.

Conclusion

Stoozing is an unconventional strategy that can help you save money and earn passive income. By understanding the benefits, risks, and tips involved, you can make informed decisions about your financial habits.

Whether you're a seasoned credit card user or just starting out, stoozing might be worth exploring. Just remember to set calendar reminders for promotional expiration dates and keep track of your balances – it's not rocket science, but it does require discipline and attention to detail!