The ‘stoozing’ trick used by Martin Lewis that can make you £1000s in extra cash per year – and why some should avoid it

MANY people believe that being good with money means having as little debt as possible. But one savings trick involves doing the complete opposite – getting INTO debt on purpose with the goal of eventually ending up with more money. The high-risk saving method, called “stoozing“, could land with thousands in extra cash – but it’s not for everyone. It works by taking out a 0% credit card – which gives you interest-free spending for a limited number of months (usually between 12 and 26 months). Sign up for the Money newsletter Thank you! You then use the credit card for your everyday spending and bills, and put your unspent cash into a high-interest saving account, so you can maximise the rewards. Remember to always pay the monthly minimum payments, and never go over the credit limit or you may lose your 0% interest. The trick has been hailed by Martin Lewis, who has used it himself in the past. The Money Saving Expert says he loaned money at 0% interest from former card firm Egg, which he then put in the same bank’s high interest savings account, which paid him 6%. According to moneysavingexpert.com, some savers have made gains of up to £5,000 a year from stoozing. But the trick comes with an important word of warning. Most read in Money You should only try stoozing if you’re already free of debt and you feel confident and organised with your money. If you have a poor credit score, or credit card, overdraft, or loan debt, you should stay away from using the trick as it could land you in more debt. How to 'stooze' Get a 0% interest spending card: Several UK banks offer these cards, which allow you to spend without paying any interest for a limited time – usually between 12 and 26 months. Move all your everyday spending onto the card: Do as much spending as you can on the card up to your credit limit. Make sure you don’t go over this or you may lose your 0% interest. Find a top savings account: Some accounts are paying up to 5% interest right now, such as Cahoot’s Sunny Day Saver. Put your unspent money into your new savings account: Put the money that you would have normally spent on your debit card into your new savings account so it can earn interest. One month before your 0% ends, either use the money in your savings to clear the 0% debt before any interest is charged, or shift it to a 0% balance transfer card. Comment now