Can anyone help me understand my stoozing scenario, it just doesn't math with me.
I can't quite understand how it works on a spending card route which Martin Lewis recommends over the money transfer route to accumulate the debt.
If I get a 5k 0% spending card, spend 5k in 6 months. Then I get another card and spend 5k, I've now got 10k in debt and 10k savings, I understand this (I'm ignoring minimal payments to keep the numbers simple).
But if the strategy is to pay off each card on its anniversary then close it and start again on a new card spending from £0 to 5k I'd never increase the debt more than my 10k annual disposable spending so its stuck at a couple of hundred interests per annum.
if I only spend 10k every year i dont see how it can generate any meaningful returns unless i balance transfer each 5k and increase/merge on them but then there are fees with the transfers so this is not the way.
Is the strategy to have multiple small cards climbing to 5k over and over instead of building a single big reusable debt which you transfer around?