Martin Lewis said stoozing could help someone make a “pretty penny” - but how does it work and what should you be aware of?
The practice involves taking out a credit card with a 0% interest rate and using that card for normal everyday spending.
At the same time, you put the money you’d normally use for your spending into a high-interest savings account, leaving it to build up.
When the 0% deal on your credit card ends, you should pay off the balance using the money from the savings account.
Alternatively, you could choose to transfer it to a new 0% card.
However, you must be financially savvy if you're looking at trying out "stoozing" - if done wrong, you could end up actually losing money and significantly lower your credit score.
Martin noted that people should set up a direct debit to make the minimum monthly repayments, which is usually around 2.5% of the outstanding balance.
After this, you’ll be left with the interest earned on the money you put into the savings account as profit.
The Bank of England has increased its base interest rate eight times over the past year and high-street bank’s savings rates are finally following suit.
The top-paying easy-access accounts offer u p to 2.85%, or you can get up to 4.8% fixed.
The Bank of England is set to increase its interest rate again tomorrow - with analysts expecting its base rate to rise from 3% to 3.5%.
Martin shared how you should try "stoozing" if you have no current credit card debt and have a good credit card score.
Most importantly, he noted how this process wasn’t for the “forgetful, ill-disciplined or inattentive".
With "stoozing", you should always be careful not to exceed your credit card limit and also make sure you are making the minimum repayments.
This is because you could lose the 0% deal you will need to make the scheme lucrative and could cause lower your credit score too, which could lose you the chance to snag a 0% credit card deal in the future.
You should also make sure you don't overspend and should only pay for things you would do normally.
Another crucial thing to remember is to never withdraw cash on a 0% card because you'll pay interest on it and, again, it can affect your credit score, which you should be careful to protect.
