What is falling asleep? How to tap into this clever way to save using 0% interest credit card offers
In the cost of living crisis, people are turning to all sorts of ways to make – and save – money.
One of the hacks making a comeback is stoozing – the art of making money from 0% interest periods.
To “sleep”, savers must first take out a 0% interest credit card and use it for all their expenses.
During this time, you will need to put all of your earnings into a savings account at the highest possible interest rate.
When the 0% offer ends, you can either use your savings to clear your card or transfer your balance to another 0% card.
You will then benefit from the interest that you have accumulated in the bank account over time. For example, if you maintain an average savings balance of £1,500 for 12 months in a best-buy easy access account paying 2.8%, you will earn £42 in interest in one year.
Although experts point out that these numbers cannot be matched now, it is still possible to earn free money.
Personal finance expert Andrew Hagger of Moneycomms.co.uk points out that to start sleeping you need to have a near-perfect credit history to get the best 0% credit card deals.
He explains: “Lenders are now tightening their underwriting criteria, due to the impact of the cost of living crisis. This means that card limits will likely be much smaller than they were a few years ago.
Currently you can borrow for up to 24 months at 0% on purchases with NatWest, Barclaycard, M&S and Sainsbury’s – however, depending on your credit history, you may be offered a 0% shorter term than advertised .
Remember that you still need to make the minimum payment each month – if you miss just one, your 0% offer will immediately terminate.
But experts think there are better ways to boost your bank account.
Hagger concludes: “I think the best way to save is to create a standing order in a savings account for the day you get paid each month – that way you get used to the money not being not in your checking account (and the temptation to spend it) while your savings balance grows month by month.