You can't beat a good stooze

Hi there,

Pics of Isle of Wight to come at some point soon. We all had a great time.. In the meantime here's something I wrote on that money making website, about one of my favourite.. money making projects..

Just like yourselves, I'm never closed to the posibilities of making a little extra money. Whilst dabbling into alternative revenue streams I discovered this one.

The term 'stoozing' comes from the Motley Fool UK website discussion boards in 2004. The principle, involving making a profit from 0% credit cards was known for many years previously. However a forum contributor named 'Stooz' was especially prolific at turning a profit. Apparently this term has now been absorbed into everyday conversation to such an extent that is considered for entry into the Oxford English Dictionary!

There are two separate methods of stoozing..

'Slow Stoozing'

: The most natural approach as it mirrors your monthly spending patterns. A 0% on purchases credit card (typically between 6 and 12months) and instant access high interest rate bank account are required. You make daily purchases as normal on the credit card and deposit a corresponding amount of money into the bank account. As no interest is charged, you pay off the balance when the 0% period is over and pocket the interest as your own. Easy!

This is the simplest approach involving minimal risk, but the dangers are there. As with usual credit card use, you need to pay off a minimum balance per month. Forget this and you'll be charged, of course! So, what you do is set up a monthly direct debit to pay this amount (normally about 3%). It is vital to make purchases as you normally would. Don't overspend as you will need to funnell a corresponding value into the bank account on a monthly basis. This account is called by afficiandos the 'stooz pot'. Discipline is required, as you don't want to have to find a pile of cash to pay off any difference in the two balances when the interest free period is over.

'Fast Stoozing'

. Quicker, but a little more care required. A similar principle to fast stoozing, but with a balance transfer credit card instead of the 0% purchases card. In the simplest terms, complete a balance transfer from the credit card to the bank bank account and trouser the interest when the outstanding balance needs to be cleared.
More complicated than a slow stooz, this one. At least two cards are needed, one needs to have a way of paying directly into a bank account. Gotta keep an eye on when those 0% rates end too, pay too late and you will get burned!

My experiences..

After a slightly wreckless adolescence and young adulthood, I now have my fingers in many moneymaking pies. I will often go out of my way to make/save a few extra pounds and it does all add up. My girlfriend paints me as a scrooge, but she's joking.. at least I think so. Those cashback credit cards have caught my eye, but getting £25 worth of food from Sainsbury's after spending a grand didnt seem a seductive return. Hearing about stoozing gave me a perverse thrill, how could I NOT be attracted to the idea of sticking it to the man, and making a few quid in the process?
So, I embarked on my first approach to secure some credit and start fast stoozing. I'd just closed the old Amex card after a record of immaculate use so assumed I'd be deemed worthy to lenders out there. And I was! Tesco took up my first application and offered me a two and a half grand balance (woo hoo!) The next stage was finding a bank account of merit to stash my stooz pot. Quite difficult with interest rates at long term lows, mind. You might get offered between 3 and 5% for tying your cash in long term, but stoozing requires getting your paws on the cash at a moments notice. So now ISAs or notice accounts for me then, gutted..High Street offerings tend to be a little stingy, and blatantly misrepresentative at times. Would you consider a monthly return of 1.05% worthy of the handle of 'sensible saver'? I found that one laughable, but the more generous options are little more alluring. So, I opted for the online option instead, Citibank was offering 3% plus change so offer to their website I went. Unfortunately, after receiving a welcoming pack of card and a deluge of security info I found this company uncontactable when it came to getting my account active! The bottom line is, you gotta ring Citibank up to get your bank account up and running, end of story.. and after holding on for a total of about 2 hours I just gave up. Surely, you'd expect a bank to welcome new business and make it as easy as possible for applicants to use their products? Whilst on hold listening to the stony indifference of their telephone system, I thought otherwise.And so, after vowing to never entertain Citibank again, I approached the next bank on my list. ING offer a little less bang for your buck (more of a whimper if I'm honest) but have instant access. I activated my new account by post, no problems there, and a week later was the happy recipient of my website login details.

Up and running...

And so I started to spend. Every time I took the family out for lunch I'd transfer the corresponding amount to my ING account. When I bought a chunky pair of Timberlands in December to stop slipping over on the pavement (remember winter?), I put a bit more into my stooz pot. The downside with a slow stooz is that you start small; the account balance increases at the rate you exploit your credit available so initial pickings are meagre. I've been pretty lucky that I could chuck in my savings, and also a balance I 'm shepharding for a close family member into the mix too. With this motley mix of credit and savings I was expecting to reap the benefit. Nonetheless. as I opened my ING account mid month my first monthly installment of free cash was.. £4... Bit deflating that...
It has got better in the months that followed: I'm halfway through a six month slow stooz with my Tesco card and the trickle in November has become a little more weighty this month. I won't be able to retire on the proceeds, but my Christmas spending will be minimal come the end of the year. Also I plan to set up other stoozes by applying for other cards, and channelling them into the pot too. One day soon, I plan my first fast stooze one day soon, that'll need a little more homework, but my initial efforts have been encouraging.

Sounds worth a go?

Stoozing has become a habit of sorts for me. If my friends and family would allow, I'd bore them endlessly with my anecdotes and strategy. Eyes will glaze over when chatting to the unconverted so the subject has not been raised. If you want to give it a go, bear in mind a couple of things first:

1. You need to be debt free. The Man will be getting 5% interest or more out of you, whereas you'd get less than 3% if the tables were turned. Pay off any liabilities first.
2. Credit scoring is a tricky business. Ratings agencies like Experian hold a copy of your file which will show how desirable you appear to lenders. Other factors will be taken into account when an application for credit is checked, but a thumbs down from Experian will take you out of the running straight away.
3. Sending out a flurry of applications may be counterproductive. Each will raise a search on your file which subsequent lenders will see. More searches may indicate desperation to credit providers who may be inclined to look elsewhere.

Stoozing 101?

A primer will be found online at stoozing.com. Have a look at the FAQs for guidance and the forum for instruction. The basic premise is simple, but advanced stoozing sounds bafflingly complex - check out some of the chat on the forums and you'll see..
To conclude, I can't recommend stoozing enough. If you have the hunger for making a few quid on the sly and an anoraky bent for organising stuff, this'll be right up your street.

'You're my Hero..'

My Valentines card from X. Who's heart wouldn't warm with the affection he sends my way.

I've jinxed this, undoubtedly, buuuuuttt...

It looks like my season long football bet may be on again!

Back in August I put my score a score down on my annual bet. Predict four promotions/relegations, with a score at stake.

I remember it clearly. My first two teams were clear (Portsmouth to go down, West Brom to go up) and at decent odds. Rooting around for two more options, the returns were not as generous. 'Sod it', I thought, 'I'll throw caution to the wind'. So, instead of putting my 20 quid on the favourites just being promoted from League 2 and the Blue Square Premier (Notts County and Luton) I said they'd both go up as champions.

The football season has had its' usual ebbs and flows. My first two bets have been dead on all season but the second two looked way off. I lamented my greed. Why had I chased the big payout when it looked like the two teams I had backed looked likely for playoffs at best? Still, you should never gamble more than you can afford, so I shrugged it off.

However.. things have changed. My two basket case teams have since flown up their prospective leagues and both sit second! Notts County sit 5 points back with a game in hand - they play the leaders Rochdale at home before the end of the season so can effectively close the gap! They score by the truckload at home but not away. Luton have just beaten leaders Stevenage away, but are two points behind but have played a game more.

Keep your fingers crossed for me..