Martin Lewis explains the ‘wait’ as savers can ‘get free money’ with a specific credit card choice

In a rare event, Martin Lewis has shared a unique money-saving tip, but has urged most of his fans not to follow it. Calling the trick “postgraduate level”, the money-saving expert insisted that the complicated process of Stoozing is only for those approaching his own financial guru status.

On the Martin Lewis podcast, the pundit explained Stoozing, several times to help his confused co-host Nihal Arthanayake, as a way for savers to earn “free money” through the zero-interest credit card scheme at percent of active banks. Although, he warned that they are knowingly doing this to the detriment of their credit score.

Sharing a disclaimer even before going through the process, Martin warned that Stoozing is “only for those who are really financially savvy and disciplined, who have done their reading and know exactly what they’re doing.” Summarizing the tactic, he said: “You deliberately create zero percent debt and accumulate your money in savings.”

Through Stoozing, savers put their income into savings and live off a credit card. Using a quick example, Martin explained that the current top savings account offers an interest rate of five per cent, so if you put £1,000 in it would earn you £50 in ‘free money’, if you put in £10,000 £500 would earn £500 and so on.

At the same time, he must pay the interest on the credit card so that it does not accumulate as the months go by. The money-saving expert explained: “Spend off your credit card, let it build up to your credit limit… then take the money you’ve built up in your bank account and save it in a high-interest savings account or Cash ISA.

“Do it as long as it’s zero percent, you’ve got to do it on a zero percent card for a year or two years and make money.” But he also cautioned that “it will lower your credit score somewhat,” so those who try Stoozing shouldn’t look to apply for debt like a mortgage.

The website Money Saving Expert revealed that this tricky strategy is nothing new, as Martin first tackled it in the early 2000s when zero percent credit cards started. The site claims that some who started Stoozing then “now report thousands in total earnings.”