Stoozing involves taking out 0% credit cards and saving the borrowed money in high-interest accounts, pocketing the interest before the promotional period ends. According to Daily Mirror - Main, a saver named Dan described earning several hundred pounds yearly, and over £1,000 in previous years when savings rates were high. He said he uses two or three cards with combined limits of £20,000–£30,000, repaying the balance from savings before the 0% period expires.
In the past, some individuals have built 'stooze pots' of up to £80,000, yielding annual gains of more than £5,000, multiple reports indicate. The Money Saving Expert team explained that stoozing requires discipline, self-control, and a decent credit history. They added that it is not recommended for those with existing debts such as overdrafts or loans.
I'll take out 2 or 3 credit cards that have a 0 per cent promotional offer, usually over a 12-24 month period. My combined credit limit might be around £20-30k. Month on month, I'll use the cards, then use my salary to pay the balance into high-interest savings. Just before the 0% period ends, I'll withdraw the savings, pay off the credit provider and close the account, having pocketed the interest from the savings accounts. Then, I wait a month till my credit score stabilises and repeat. It's simple to do. You just have to ensure you've a guaranteed annual income that covers the cost of credit borrowed. And you must be savvy enough to ensure you put that money into savings and not touch it! Overall, this tactic makes me several hundred pounds yearly, possibly £1,000+ when saving rates are high. Money I'd rather have in my pocket.