Martin Lewis has revealed how Brits can get free money from their banks this winter.
The Money Saving Expert says the move can be risk free, and uses a technique known as “stoozing”.
Writing in his MoneySavingExpert weekly newsletter, Mr Lewis said stoozing was a good way to get extra cash that can be used on energy bills and weekly shops.
Stoozing involves taking out a credit card with a 0% interest rate and using that card for normal everyday spending.
Stoozing is back. Stoozing is the art of manipulating 0% credit card deals with the sole aim of making profit
The old online bank Egg, once gave me a 0% card. I took £5,000 from it. And saved it at 6% with… Egg! Sheer poetry
Can you stooze?… https://t.co/RMukOFgtno
— Martin Lewis (@MartinSLewis) October 12, 2022
As you make purchases, move the cash in your bank account into savings deals which pay interest.
While interest rates are low, savings rates are on the rise, with the top savings rate on a fixed account peaking above 5%, while easy-access accounts can be found with an interest rate of 2.75%.
When the 0% interest rate term ends on your credit card, pay off the debt.
Explaining the system on MoneySavingExpert, Mr Lewis said: “While not as lucrative as it used to be, you can still make a pretty penny as long as you know what you’re doing. Beware though, if done badly, stoozing can lead to you losing money and significantly lower your credit score.
“Do it right and this is risk-free. Yet stoozing isn’t for the forgetful, ill-disciplined or inattentive.”
You should be careful not to exceed your credit card limit and also make sure you are making the minimum repayments.
Mr Lewis said: “Don’t try to repay this card in full. Just set up a direct debit to make the minimum monthly repayments, usually around 2.5% of the outstanding balance.
“Don’t miss any payments, or you could lose the 0% promo offer, messing up your entire plan.
“And if you have a mortgage application or important credit application coming up, a credit card debt (especially if it’s maxed out) could affect lenders’ affordability checks, so you might need to hold off on stoozing.”
