How to Make Money From Stoozing

A29FKH Single remembrance day poppy against white backgroundBack in the days before the credit crunch, the concept of stoozing was very popular, and highly lucrative. The idea is that by manipulating credit cards you could earn several hundred pounds a year by investing the money that you have borrowed on a 0% card.

When done right it’s an easy way to make some extra money but it’s only for the organised and disciplined amongst us. If you’re forgetful, you might find it easier to use a cashback credit card instead.

But if you feel that stoozing is for you, this step-by-step guide will show you how to do it right.

Step 1 – Get a 0% card

The first thing you will need to do is take out a credit card that offers a long 0% interest period. You can find the best 0% deals online here.

 Step 2 – Spend as normal

Once you’ve received your card you begin using your credit card instead of your regular debit card. This should allow you to build up the amount of money in your current account.

Remember – you must not use the credit card to make extravagant purchases or as a debt solution, it should only be used to pay for things you’d normally buy.

Step 3 – Pay as little as possible

Once you’ve received your first credit card bill you will need to ensure that you make the minimum repayments every month.

If you miss a payment you will lose the 0% deal, effectively ruining your chances of stoozing successfully.

Top tip – if you’re serious about stoozing it’s best to setup a direct debit to pay back the minimum amount on your credit card each month. This way you’ll never forget!

Step 4 – Invest, invest, invest

After a month you should have built up a nice amount of cash in your current account, this is the money that you’ll use to invest.

As you will need to have access to this cash at any given time, the best place to invest the money is in a cash ISA that doesn’t incur penalties for accessing your money.

At the minute the best ISA available is from the Coventry Building Society, however, this is only available to people who haven’t opened an ISA before.

Step 5 – Grow your portfolio

Once you’ve reached the limit on one card, the stoozing professional will begin spending on another card, giving them more cash to invest.

It’s possible to do this with several cards but it can get confusing so ensure you’re organised!

To start with why not use just a single card? Once you’ve successfully paid off the card and made a little money you can begin using several cards, allowing you to invest even more money.

What I hope you’ve learnt from this article

If done right stoozing is a great way to earn yourself a little extra money each year. It’s difficult to get right but can be very rewarding, we’ve heard of people investing up to £80,000 in the heady days before the credit crunch.

What do you think to stoozing? Will you be giving it a go? Let us know in the comments below.

This info does not constitute financial advice, always do your own research on top to ensure it’s right for your specific circumstances and remember we focus on rates not service.

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