BBC expert anyone with M&S, TSB, Lloyds, Tesco, HSBC credit card £3,000 alert

BBC expert anyone with M&S, TSB, Lloyds, Tesco, HSBC credit card £3,000 alert Finance expert Laura Pomfret appeared on BBC Morning Live over potential money making method A BBC expert has explained how people who use credit cards from M&S Bank, TSB, Lloyds, Tesco Bank and HSBC to actually make money. Finance expert Laura Pomfret appeared on BBC Morning Live to discuss ‘stoozing’, and how some people could earn hundreds in savings interest. However, she emphasised that while it can work, there are some key rules, and explained using the sum of £3,000 as an example, and added that people need a lot of ‘discipline’. She said: “Stoozing is a financial hack that some people use to make money through 0% credit cards. So essentially what you do is you use a 0% credit card to pay for your everyday things and you put the cash that you would have spent on those everyday things into a saver and let the interest build up on that cash and then when the 0% term finishes you use that pile of cash to pay it off and you pocket the interest.” It is thought that the ‘stoozing’ name comes the username of an individual on a financial forum who invented it. Ms Pomfret said it works best when you get 0% purchase credit card deals, and you have high-interest savings accounts available. Ms Pomfret told viewers people need to be ‘really organised’ to take advantage: “There are certain rules that you need to stick to if you want to do this properly. Listen to the rules and then see if you think you can handle it.” ‘Rules’ on Stoozing Ms Pomfret said: “Firstly, you would need a high-interest savings account. This doesn’t really work unless you get a decent rate, 4.5%, 5%, a decent rate for your time. Then secondly, you need a 0% spending credit card. So, not a balance transfer. You know, it’s specifically about can I spend on this for a long period of time and can it cost me 0% interest. “Because again, that’s crucial to be essentially making some money on this. Then, after that, you use the credit card for your purchases. Are you buying something big with it? You know a fridge or a television or are you doing your fuel or your shopping like weekly shop on it where you are you need to be spending quite a lot of money for it to work out.” She said that people need to use for their everyday purchases - then when each month the bill comes, people should not clear it don’t clear it. She said: “You pay the minimum, which you have to do, but you put the balance into a saver. And so what you’re doing is you’re kind of using the credit card cash flow to build up saving uh in the background. And each month again, you don’t clear the balance. You just move it over and you make sure you’re paying the minimums. And you repeat this. You rinse and repeat until the end of the offer. And then you pay the balance off and you’ve hopefully built up interest.” She said this can be done with multiple credit cards. “It depends on how many you can apply for and how many you feel comfortable. There’s obviously a lot of risk with doing that,” Example: Ms Pomfret said: “So, let’s say that you spent £3,000 on the 1st of January on your 0% purchase credit card. We’re on the red with £3,000 in debt and we put the £3,000 into a saver the same date. Again, this is very very hypothetical and a an easier example to use. “What happens is over that 12 months, you’ve been paying the minimums on the card, but you’ve built up £150 in interest in that savings account because you’ve had three grand cash there because you use the credit card for the £3,000 purchase. When the term comes to an end and you use your money, it’s sat there waiting for you to pay off the card in full before incurring any interest, you’re left with £150. So that visually is what is left over once you have done your snoozing. Mathematically, it works.” BBC Morning Live host Holly Hamilton said it looked to her like quite a ‘high risk’ method. Ms Pomfret explained: “So if you breach the terms of your 0% credit card so if you miss a payment accidentally you know you not managed your money well or you’ve changed banks or whatever you breach the terms, you might lose that 0% deal. “Obviously, also missing payments impacts your credit score, which is another issue, but it could trigger the high interest. So, the whole point of this working is getting the 0%. If you suddenly end up paying interest on that balance, you negate or cancel out any gain that you’ve made on interest. Secondly, and this is true for most people, you have to keep moving money into the savings account.” She said it is a lot of effort to keep up for 2 full years and added: “Bear in mind that there’s a lot of effort and stress for not always quite a big return.” Money Saving Expert guide to stoozing here.