Financial guru Martin Lewis has shared his expert advice on a simple "stoozing technique" for people to get free cash from their banks.
The MoneySavingExpert also noted that if done correctly, the hack is risk-free. DerbyshireLive reports that Martin gave the advice in his latest newsletter, as he explained what stoozing is and how to do it successfully.
The basic idea behind stoozing is to make money by getting interest on cash credit card firms lend at zero per cent.
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You begin by taking out a credit card with zero per cent interest. Complete your everyday spending using that card, and as you do, put the cash in your normal bank account into savings deals, paying interest.
Savings rates are now on the rise following years of extremely low returns on cash. The top savings rate on a fixed account has just headed past 5 per cent, while the best-paying easy-access account currently sits at 2.75 per cent.
So, when the zero per cent term ends on the credit card, you can either transfer the debt to another zero per cent card, or use some of your savings to pay off the card debt. Writing on his website, Martin 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."
Martin also said that the first steps to take are making sure you have no debt lying around, and that you have a good credit score - it is also helpful to make sure you are on top of payments. Lewis added: "Do it right and this is risk-free.
"Yet stoozing isn't for the forgetful, ill-disciplined or inattentive."
Another important note is to not exceed your credit limit on the card. This will mean you lose the zero per cent offer and damage your credit score.
Also make sure you don't overspend - only pay for things you would do normally. Only making the minimum repayments is also really important.
Martin continued: "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 per cent of the outstanding balance.
"Don't miss any payments, or you could lose the zero per cent promo offer, messing up your entire plan."
You should also never withdraw cash on a zero per cent card. You will pay interest on cash you take out on these cards, and it can harm your credit score. Finally, be careful to protect your credit score.
Martin added that lots of credit card applications and high debts - even on zero per cent interest cards - can harm your credit score, so it is useful to space applications out.
He concluded: "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."
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