Slow Stoozing Instructions

Step 1

Open up a good savings account that can be easily managed online and that pays a high interest rate.

Step 2

Apply for a card that has a good 0% on purchases offer. The longer the period of the offer, the more money you can make from this card.

Step 3

When making your normal monthly purchases, use your credit card as much as you can so that you maximise your use of the credit limit. However, it is important that you do not spend more money than you would otherwise do. Simply look for opportunities to use your card where you might have used a debit card or written a cheque. Do not use your credit card for cash withdrawals, otherwise you will be charged a large fee. It is also important that you keep track of your spending so that you do not go over your credit limit and incur charges!

Step 4

When your credit card bill comes, you must make the minimum monthly payment (typically 2% to 3% of the outstanding balance) as normal. You may find it easier if you have set up a direct debit to do this so that you never miss a payment. This will leave a large balance on your credit card, but do not worry because you are not being charged interest on this balance (remember, the card has 0% on purchases). However, what you must also do at this point is to make a payment from your current account to your savings account for the amount that is still outstanding on your credit card - the equivelant of paying for the goods you purchased on the card. This is how you build up your stooz pot.

Step 5

During subsequent months, continue to spend as normal and to check that you are not approaching your credit limit. When each statement comes, make the minimum payment and then top up your savings account so that it matches the amount of money on your credit card. This way, you are always in a position to pay it off in full and you do not overspend.

If you do reach your credit limit during the introductory period, it is essential that you make no more purchases on the card. Of course, you do not need to pay off the full balance until the end of the offer, but you must stop spending on it and you must continue to make the minimum monthly payments.

Step 6

At the end of the 0% introductory offer on purchases, you must pay off the full balance. You can do this quite simply by moving the money out of your stooz pot savings account and paying off the credit card - you should always have enough money to do so. Of course, you could always find a card that offers 0% on Balance Transfers and move the 'debt' on to that card so that you continue to earn money from the stoozed sum in your stooz pot. Having transferred the debt onto another card, then why not get a new 0% on purchases card to continue to build up the stooz pot from your purchases. At that point, you become a fully paid up serial stoozer!

Please note:

One of the benefits of slow stoozing, especially alongside fast stoozing, is that you don't need a high limit to start with - like you do with fast stoozing. This, therefore, may help other applications for fast stoozing cards to run in parallel with your slow stooz card. If you go for a long deal, the chances are that you may gain a limit increase without an external credit search, as you approach your limit part way through the intro period.

Bear in mind, when calculating slow stoozing profits, that you may only be earning 'stooz derived interest' for 10 months of a 12 month deal. This is because your first payment due date may be nearly 2 months from card activation, depending on the date you choose for your statement to be produced, and you will also have delays in getting the cash out to clear the card at the end of a deal.

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