Stoozing can reduce interest paid on credit cards. Many credit
card companies offer special introductory interest rate offers
in an attempt to win customers. This is like a loss leader in a
shop - they tempt you to use their credit cards with a low
interest rate, and then increase the APR when you owe them
money. Stoozers use these special 0% and low interest rate
offers to reduce the amount of interest paid over time. Many
credit card customers in the UK have high balances on which they
pay high interest rates. Normal interest rates on credit cards
are higher than mortgages and loans - it would not be unusual to
save thousands of pounds per year by stoozing. A stoozer will
take advantage of introductory rates by applying for a credit
card with 0% apr and transferring their existing credit card
balance to it. After six or nine months (or whenever the free
balance transfer period ends) they will apply for a new credit
card and begin the interest free period again. This can continue
until the debt is repaid, saving hundreds of pounds in interest.
Some people who stooze do not have debts. They put the money
into a high interest savings account (such as an ISA) instead.
In this way the stoozer will actually earn interest.
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Find out more about the advantages and potential pitfalls of
stoozing credit cards at
stooze.com
