Stooze Your Way To Great Savings
In today’s tough economy, many people are looking for ways to make a little extra cash without a lot of work. One option that you can consider is called stoozing. Stoozing is a process of taking advantage of balance transfer credit cards or credit cards with low promotional interest rates. The premise is that you take money as a balance transfer from a credit card, or money you save using a low-interest card and deposit that money in a high interest savings account. Essentially, you are borrowing money and investing it in a 100 percent risk free way.
Types of Stoozing
There are two main ways to get started with stoozing. One method involves using a balance transfer credit card that allows you to deposit the money that the creditor lends to you in a bank account. You will need to find a card that offers you either 0 percent interest or a very low interest rate for a period of time. Most cards will offer you this special interest rate for around six months or one year. You can find a card by taking a look at credit cards at Moneysupermarket to get started.
Once you have taken the balance transfer, the money that you transfer should be deposited into a high interest savings account, so you can start to make interest on the deposited cash each month. Pay the minimum balance only on the credit card until the promotional period ends and continue to earn interest on the rest of the borrowed cash. At the end of the repayment term, you will pay back the amount of money that you borrowed in the balance transfer and you’ll get to keep all of the interest you made off the creditor’s money.
In order to make sure that this is indeed profitable for you, you need to find out what fees, if any, are associated with taking the balance transfer. It is common for credit card companies to charge up to 3 percent of the total balance transferred, so find out if this is the case and make sure you’ll make enough in interest to cover the fees and still turn a profit.
Slow Stoozing
The other method of stoozing involves finding a credit card that offers you a low promotional rate on purchases. For instance, you can find a card that offers you zero percent interest for a period of time. Then, simply use the credit card to pay for the normal expenses you would otherwise be paying for. Deposit the money into a savings account that you would normally be using to pay those expenses and start earning interest on that cash. As your credit card bill comes in, you’ll pay the minimum on it, only until the promotional period ends.
With this method, it is important to be sure that you are not spending more than you normally would on your routine expenses. Otherwise, this method may not end up making you any money at all.
Ensuring Success
Success with stoozing involves choosing the right card, which you can do with the help of credit cards at moneysupermarket. You also need to be sure to make all payments on time, so you don’t lose your low interest rate and to ensure you understand all fees and costs to actually come out ahead.
