In short
A “Question Time” episode of The Martin Lewis Podcast covering ISA contribution timing rules, consumer rights for faulty second-hand goods (including cars), whether bank account applications trigger hard vs soft credit searches, whether to “stooze” (use 0% credit cards to earn interest), and a car insurance “sweet spot” for getting cheaper quotes.
Guests (callers)
- David (Edinburgh; parked at a motorway service area) asked about statutory rights when buying second-hand goods/vehicles.
- Dan (Sheffield) asked about whether opening bank accounts triggers hard or soft credit searches ahead of a mortgage deal.
- Fran (Stoke-on-Trent) shared savings successes and asked whether she should stooze using 0% debt or keep paying cards off in full.
- Kath (Liverpool) shared a car insurance success using the 22–23 day quote timing.
Key claims + examples
- ISA: you can’t “top up later” by opening new ISAs with £1; contributions must be made in the tax year.
- Rights: “Satisfactory Quality, as described, Fit for purpose, and last a reasonable length of time” applies to second-hand from traders; price/age affects what’s “reasonable.” Private-seller cars are “sold as seen” unless misrepresented.
- Credit searches: most bank account applications involve hard searches due to overdrafts, but Chase may use soft searches; Barclays case was unexplained and promised follow-up.
- Stoozing: requires creating false debt on a 0% card and keeping minimum payments; paying off in full doesn’t apply because you’re intentionally borrowing to earn interest. Not for people who can’t control spending.
- Car insurance: getting quotes about 22–23 days before renewal can cut costs dramatically; Kath halved her renewal quote (about £1,226 down to about $637).
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOIntroduction to Question Time
1:06 to 2:25
Hosts introduce the Question Time format and upcoming topics.
“Everyone at work always takes the mick out of me for, what's Martin told you to do now?”
Discussion on ISAs and Stoozing
2:25 to 4:39
Exploring questions about ISA contributions and the concept of stoozing.
“So I'm going to make sure everybody eats.”
Consumer Rights on Second-Hand Purchases
4:39 to 7:27
Discussion on statutory consumer rights for second-hand goods.
“Because I'll be honest, if I have to choose between annoying one of the two of you, I'm annoying you.”
Rights When Buying from Private Sellers
7:27 to 11:45
Clarifying rights when purchasing from private sellers versus traders.
“without some quite sophisticated routes of doing something called stoozing and artificially building a balance on the credit card and putting that into a cash ISA.”
Listener Experience with Second-Hand Vehicles
11:45 to 14:00
Listener shares experience and queries about buying a second-hand camper van.
“And I said, actually, that's not correct.”
Understanding Second-Hand Rights
14:00 to 15:16
Learn about consumer rights when buying second-hand vehicles.
“So you're a little bit longer at the top end of that.”
Transitioning to Bank Account Questions
15:18 to 19:10
Hosts discuss listener questions and set up for a banking topic.
“Are you sitting there thinking, oh, I know what I wanted to ask him?”
Discussing Bank Account Applications
19:11 to 20:00
Analyzing how bank account applications affect credit scores.
“And shall I be honest with the listeners, Matt?”
Cheshire vs. Manchester
20:01 to 21:48
A light-hearted debate on geographical identities in the UK.
“I've just, I mean, it's more, it's like Descartes.”
Listener Success Stories
21:49 to 24:19
A listener shares their financial successes and experiences with switching.
“this is a really, really, what on earth are you all going on about?”
Show all 15 chapters
Explaining Stoozing
24:20 to 28:00
A detailed explanation of the concept of stoozing in personal finance.
“because banks like it when you've got longevity, don't they?”
Understanding Stoozing: A Money-Saving Strategy
28:00 to 32:58
Learn how stoozing works and how it can earn you money by using zero percent credit cards effectively.
“would probably, if you could get, if you could pay it off within a year or so, you'd use a zero percent credit card because there's no cheaper way to borrow than interest free.”
Success Story: Halving Car Insurance Costs
32:58 to 39:28
Discover how a caller saved over £600 on car insurance by timing her quotes strategically.
“that will take you through it step by step.”
Listener Questions: Tech and Financial Insights
39:28 to 42:01
Engage with listener inquiries about tech experiences and their impact on finances.
“We didn't have a funny or a scans one last week because you blamed GDPR for deleting them.”
Tech Gifts and Personal Anecdotes
42:01 to 45:30
Explore Martin's experiences with unique tech gifts and personal stories.
“I was twice because I got an OBE, then an upgrade.”
Transcript
Automatic transcript. May contain errors.0:00This BBC podcast is supported by ads outside the UK.
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1:05Martin Lewis:Can you do sad fart for me? What does sad fart stand for? I knew you were going to ask me this. I should have written it. You should have. What a very interesting question. Everyone at work always takes the mick out of me for, what's Martin told you to do now? Very, very not good at change, Matthew. I know. You, Dan. Hello and welcome to the cunningly named The Martin Lewis Podcast. I do wonder what that's going to be about. And this is our Question Time episode where you are Esquires. Extremely savvy questioners, don't you know? Get to ask me your questions on absolutely anything and everything, open brackets within reason, close brackets.
1:41Martin Lewis:This week, if I haven't filled up my ISA last year, can I add the remainder now? Are my rights different if I buy second-hand goods and they turn out to be faulty? My bank's done a strange thing. Can you work out why? Well, we'll see, won't we? Then Fran gets on the line. She's become a huge money-saving convert and saved thousands. She tells us about that, but wants to know, is it time to step up and become a stoozer, where you make money from 0 % debt? Or should she stick to paying off her cards in full? And finally, a sweet spot car insurance success. She halved her cost by getting her quotes at exactly the right time.
2:22Martin Lewis:Oh, it's almost too exciting. Play the theme tune. I got meals. I got paid. So I'm going to work for a while. I got mouths. I got feet. So I'm going to make sure everybody eats. Hello and welcome to our Question Time podcast where you get to ask me questions on anything and everything. All set together, open brackets within reason, close brackets. and joining me, of course, who else could it be? The custodian of questions himself. Yes, the COQ. I haven't said that for a while. No, you haven't. I haven't, but there we go. It is Professor Dr Sir Matthew Burnham, Esquire. And of course, for regular listeners, you'll know that all of those titles are completely legitimate within the canon of the podcast, but not outside.
3:16Martin Lewis:However, Matthew, before we go anywhere, I have had an official request to doc you one of your titles. Before I tell you why, which title would you lose? The Professor, Sir Doctor or the Esquire? I would lose the Professor. So you'd be Sir Doctor Matthew Burnham Esquire? Yes, yes. OK, and this is because she who must be obeyed... GDPR. GDPR, Google Docs professional Rosie, who is here live fact-tracking. I'm actually doubling up today because I've got Isabel, who is soon going to be taking over from GDPR. They're both in the room today, so it is like a powerhouse. I mean, the intellect is flowing off them.
3:57Martin Lewis:You can see waves in the air coming off the mega brains that I've got in the rooms with me. It's like, I think almost a sheen of colour has changed. But GDPR wasn't here last week. And last week you said she had deleted all of the funny questions and you blamed her. Yes, because she had. And she is not happy because she says she only deleted the questions that had been rejected. And this is her argument. And amid the super brainwaves and the blue that's flowing out in the colours, there's a little bit of red of a rate and anger. So she has requested that you lose a title this week. OK. I'm not going to re-record the intro, but I am now from this point on going to refer to you as Sir Dr.
4:41Martin Lewis:Matthew Burnham-Masquart. What? Because I'll be honest, if I have to choose between annoying one of the two of you, I'm annoying you. So you're going to annoy the person who's up in Manchester and cannot actually do anything about it, rather than the person who's sat next to you. Yeah, but you know, Rosie's the one who protects me with the sort of live fact-checking. She's got my back. She's a bit scarier than you. Is she laughing next to you? She's laughing at that. She's laughing at that. But it's that sort of laugh that says, it's funny, but it's true. that's exactly where she's going at this point how are you?
5:17Martin Lewis:you well? yeah yeah very good thank you very happy to be on the podcast yes it's nice isn't it? we're all excited it is we should probably do some proper questions shouldn't we? yeah I've got some good ones for you okay let's do some so what do you have for me? question to start with from Martin who has emailed in to martinlosepodcast at bbc.co.uk okie dokes I thought you were going to say good name it is I was going to leave that to the end but go on I'm not doing it now I've ruined it. I'm sulking. He started with Dear Brigadier Admiral, Wing Commander Burnham Esquire, and Martin. Oh, I see.
5:49Martin Lewis:Okay. I like that. I don't know if this Martin's going to get a good answer. So he is giving you way more titles than we have subtracted from you from Rosie, but carry on. And they're all military ones, aren't they? They are. They are. I mean, he's so got you wrong. No, I used to be an air cadet, I'll have you know. Yeah. Did you? An airhead, maybe, but an air cadet, no, so I didn't mean it. He says, I wonder if you could settle an ISA question for me, as I'm struggling to find a definitive answer. At the moment, I have£20 ,000 in an ISA from a previous tax year and around£5 ,500 in this year's ISA.
6:20I probably won't be able to use all of this year's£20 ,000 allowance, which made me wonder whether the following strategy is allowed. I'm intrigued to hear what this is. Do go on. Suppose that in the next tax year, I opened a new ISA with just a pound and then do exactly the same the year after. When my pension lump sum arrives in 2028, could I then pay£20 ,000 into each of those existing ISAs using the relevant tax year's allowance, plus whatever remains of my allowance for the current tax year? I'd really appreciate your guidance as I'm trying to plan well in advance and avoid making an expensive mistake.
6:55I hope this makes sense. Con regards, Martin.
6:57Martin Lewis:Oh, Martin, I mean, it's a good idea. It's a clever idea. And obviously, with that name, I'm not surprised that you came up with something like that. But the short answer is no, you can't do it. The ISA rules are really specific. It is about the amount of money that you put in in the tax year. It's not an allowance that you can carry over. There are some things in the tax system that do work that you can carry over allowances. This isn't. So you would have to get the money in in the tax year. There is no real way around that without some quite sophisticated routes of doing something called stoozing and artificially building a balance on the credit card and putting that into a cash ISA.
7:36Martin Lewis:But I have to say, I think that's only for people who are really financially savvy and know exactly what they're doing, because the risks of it can be quite high if you get it wrong. So I'm afraid that the straight answer is no, you can't just open up an ISA with a pound and then a couple of years later, fill in what you haven't put in. It's all about what you put in, in the tax year itself. I'm so sorry. So Matt, it's caller time, I'm pretty sure. Second question. Of course. So who've you got for me? Got a question from David. He's from Edinburgh, but him and his family, I think, are driving down the M6.
8:11So I don't actually know where he is exactly. So they are in transit, in transit somewhere. Hi, David. Hi there. How are you doing?
8:20Martin Lewis:Hello, David. Nice to speak to you. You're not driving, are you? I am not driving at the moment. I am parked up in a motorway service area. Oh, how lovely. How wonderful for you. high prices but they can be quite enjoyable are you do enjoy motorway services i try not to no i try to find little villages just a mile off the motorway to use the local local services and put money back into local communities instead oh that's very good of you and there was a wonderful website that would actually direct you to some of the best places i think it was called a mile off the motorway or something a mile off them yes it is yep and uh that can be really useful on that level great well let's get on to your question let's go into your question see if we can help you yeah so my question is around um statutory consumer rights and your sad fart acronym does it apply to second-hand purchases and in particular does it apply to second-hand vehicles okay so first of all can you do sad fart for me what does sad fart stand for uh i knew you were gonna ask me this i should have written it down you should have you asked that question i mean it was pretty obvious you've listened to the podcast there's no way i'm letting you get away with it i'm usually i'm usually running when i'm listening to you martin oh that's nice i like listening to things when i run too yeah here you go satisfactory quality yeah that's your s yeah um oh this is going to kill me now uh oh uh no it's i'm having a i'm having a mental block it's too much pressure okay but don't worry we're not gonna do that to you david Matt Yes What does sad fart stand for?
10:00Satisfactory Quality Quality As described Correct Last for a reasonable length Well you've got an F
10:06Martin Lewis:You've got an F Come on work together boys As described F is Fit for purpose Fit for purpose And then last a reasonable length of time Satisfactory quality as described Fit for purpose And last a reasonable length of time If an item isn't when you buy it Then if it's in a normal shop you got Or online then you've got 30 days to send it back and get a full refund. After that, it's a partial refund or repair or replacement. So your question, does it apply to secondhand goods? Yes. If you're talking secondhand goods bought from a trader, a retailer, you know, someone where we'd expect it. However, the fact that it is secondhand and the price that you pay would be taken into account.
10:52Martin Lewis:So when we talk about satisfactory quality, if you were to buy a brand new television set for£1 ,000 and you were to compare that to buying a used television set for a fiver, you would not be expecting the same quality level of the used television set for a fiver that you would off the£1 ,000 brand new telly. And that is implicit within the satisfactory quality as described, fit for purpose and last a reasonable length of time. Now, you can hear all those subjective judgments that are within that phrasing satisfactory, reasonable. The price. And the fact that it's not not new is incorporated within the definition of satisfactory and reasonable.
11:40Martin Lewis:Do you see what I mean by that? Yeah. Yeah, that makes perfect sense. now where where it gets more trick now it's worth noting if goods were cheap because there was a floor and it was disclosed to you so i've actually had this happen to me once uh i went into a shop i'm pretty sure it was a shirt it might have been a jacket it was quite a long time ago but it definitely happened and uh there was a fault on it that i'd spotted i think it was a button i think it was a button on a shirt but if i've got it wrong it doesn't change the big picture here and i asked for a discount and i got a tenner off and the shop assistant said to me but that means you can't bring it back.
12:15Martin Lewis:And I said, actually, that's not correct. They didn't know who I was, so I was fine to say this. It wasn't like I was bullying. I said, that's not correct. I can't bring it back for the button, but if there is another fault, then I still legally have rights to bring that item back. But I couldn't then say the button was faulty because I got a discount for the button. So that was as described because I got a discount within the description of it working in that way. So, or alternatively, if the flaw was obvious enough in a secondhand good, You know, if you bought it and there was a picture and it had a big crack down the middle and that was a vert in the picture and you chose it, then you're not bringing it back for that.
12:51Martin Lewis:Your vehicle question, the same rules apply, but there is a really big thing you need to be aware of. If you're buying from a private seller, not from a trader, a trader would be defined as someone who is actually making an income by doing this and selling on a basis, whether it's a part time or full time income. then your rights are nowhere near as strong. Essentially, the car is sold as seen. It doesn't have to be of satisfactory quality or fit for purpose as long as they haven't lied to you about what it is. So if you were told about the fault and it was fully explained, if you should have spotted the problem like there was a dent, if you expected it and inspected it and you didn't.
13:27Martin Lewis:So really there is quite a big difference between buying from a private seller and buying from a trader in these rules. Does that make sense? Yeah, that makes total sense. So what are you looking to buy? I mean, you're a runner. surely you don't need a vehicle you can just go everywhere on your two feet no it was um a past experience when i um actually bought a camper van that was second hand and um it was during covid which is a terrible time to buy a camper van and it got delivered to us and it was not what we expected so was it by company or was it by a private individual it was it was by a company okay so you do have stronger rights yeah it's slightly more complicated because they actually bought a second-hand van and then did a brand new conversion of it into a camper van wow so therefore part of it was new and part of it was secondhand and yeah it wasn't what we expected when we got it so now the most important question i'm going to ask you this david so how far do you run when you listen to the pod and what speed you listen to us on so i listen to you at normal speed okay my brain can only cope with your normal speed okay and And I'm normally running kind of four to eight miles, somewhere around there.
14:38Martin Lewis:Okay, yeah. So I would do 10Ks normally. So you're a little bit longer at the top end of that. Here's the question. When you get your badge, are you going to bear your badge when you're out running? Or is there a risk of like a little bit of scraping? You know, it could go in the wrong place. I only have one other badge that I truly treasure, and it's my Tufty Club badge. Okay. And I think the two badges probably need to be mounted properly and hung up in the living room. I think that's the only appropriate thing to do. If you do that, we want a picture of the display board. Oh, yeah, absolutely.
15:08I will send you a picture, I promise.
15:10Martin Lewis:All right, David, thanks so much for your call. Really appreciate it. Thanks, Martin. Cheers, mate. Yeah, thanks for all you do. Cheers. Bye now. Bye-bye. Are you sitting there thinking, oh, I know what I wanted to ask him? Well, this is your opportunity. If you've got a question, then just send them in to martinlewispodcast at bbc.co.uk. And please do start them, Dear Martin. No, dear Matt. Dear Martin. Dear Matt.
15:38Martin Lewis:OK, we've done a read. We've done a caller. It's time for another read. Unless I break format. But I'm not going to, don't worry. You wouldn't break format, tell me, Matt. You know I don't like change. I know, don't worry. Question from Dan in Sheffield. He says, hi, Martin. Hi, Dan. I listened. And no Matt. No Matt, just you. Yeah, good. Well done, mate. I know. I listened to your recent episode about bank account switching and I was wary of starting. because my mortgage deal is ending within the next six months. So I need to apply for a new deal. And you'd mentioned that open a new bank account puts a hard search on your credit file, which can affect your credit score.
16:12Correct. However, I have a very good credit score. So I decided that... Ooh, you get you, Dan.
16:18Martin Lewis:So I decided that... Sorry, I think it's brilliant that you've got one. It was the way Matt read it. It was Matt's reading and intonation that made me do that. Nothing to do with you, Dan. I like to put a bit of emphasis into it. It's good. He says he has a very good credit score. So I decided that one switch might be an acceptable risk. So I opened a Chase account, set up a couple of charity direct debits, and shortly after switched to the Barclays account that offers a£200 switching bonus. So just a quick interruption in there, just to explain to everyone, he opened the Chase account, I presume, because he knows that the Chase account doesn't do a hard search, it only does a soft search, and he used that Chase account so he had a bank account that he could then switch to get the switching bonus.
16:57Martin Lewis:So it was almost like the Chase account was a burner account. just to get the switching bonus. But the Barclays, because Barclays has an overdraft, does do a hard search. Carry on with the question. The thing is, when I check my credit score, which I can do via my main Monzo banking app, both bank account applications only show up as soft searches. The only thing showing as a hard search is a credit card application from a couple of months ago. Can you confirm whether opening a bank account results in a hard search or a soft search? Or does it depend on the account? Can I continue to switch willy-nilly without fear of it affecting my mortgage application?
17:32Martin Lewis:What a very interesting question. And there is an unknown in here. And so I'm giving Rosie and Isabel a look. Look has been received because they're going to go and have to check this for me after the podcast and we will talk about it next week. So in general terms, most bank account applications will do a hard search because a bank account has an overdraft and an overdraft is a credit product. And when you apply for a credit product, in most cases a hard search is used. They don't have to do, there is no obligation on them to do a hard search. They can do a soft search but most do a hard search.
18:08Martin Lewis:Chase does a soft search because it is a bank account that doesn't have an overdraft. So it can do a soft search and that is just an ID check. Now when you check your credit file and remember you're only looking at one credit reference agency's file and it is possible it's different on others, they do separate into hard search and soft search. Soft search, as you can see, but doesn't tend to affect your credit worthiness, can't affect your credit worthiness. Hard search, as you can see, and does affect your credit worthiness. I would have assumed Barclays would have had a hard search. I do not know why it didn't have a hard search in this case, and that was what my look to Rosie and Isabel was for, because I'm going to get them to go and do some digging and speak to Barclays about it and see why it may not have had a hard search.
18:51Martin Lewis:But what I would strongly in your mortgage position advise you to do is to consider that all bank account applications, unless you know they do a soft search, will do a hard search and therefore could have an impact on your credit worthiness. And we will find out exactly what was going on there at some point in the future. And shall I be honest with the listeners, Matt? Always, I think, is the right answer, isn't it? Yes, question mark. The honest thing is, I will bring you that answer back if it's interesting. Because to bring it back, I'm going to have to preamble and explain the whole thing and where we got to on it.
19:28Martin Lewis:So if it's interesting, I will bring it back to the podcast. If it's not interesting, I won't, but we'll let Dan know. Okay. That's my deal. Deal. I think that's fair. Deal with the listeners. I like it. I mean, that's the truth of how it works. You don't really want to sit through a long explanation in another podcast of something that's not interesting. We try and keep everything interesting or at least usable. one of the two things or occasionally fun speaking of fun
19:53Martin Lewis:so matt the podcast called question time and i think you probably have somebody to ask me a question imagine if i just said no no i don't actually this time it's it's just martin talking to himself time i'm imagining it but i'm thinking it might be a fail it might just like literally you know you're the curator of questions if you don't have questions for me then your entire essence is just, you know, disappears. Would I get the sack? It's more than that. I've just, I mean, it's more, it's like Descartes. You know, if you don't have questions, are you? I mean, that's, it's a whole, maybe there's a whole new branch of philosophy.
20:27Martin Lewis:Well. Mattism. It's a good job. I do have a caller. Good. I've got Fran and she is in Stoke-on-Trent. She tried to tell me she was in Cheshire, but it's actually Stoke-on-Trent, isn't it, Fran? It's both. How's it both? Because. Because I'm a Cheshire boy originally, So I can adjudicate on this. So very on the outskirts of Stoke-on-Trent, kind of in between Stoke and Crewe. OK. And you're just over the border, are you? Yeah. So I used to live near Congleton, actually, if you know where Congleton is. I do. I do. I know very much. So this is a bit like the discussion I had. I'm about to offend a lot of people, Matt.
21:05Martin Lewis:I need to warn you of that. So I have this thing that there are people who live in what I would call the conurbation of Manchester who say they're from Cheshire. You know what I'm talking about, your altering gums, that type of stuff. And they say they're from Cheshire. Now, I grew up in mid-Cheshire. I'm Delamere Forest, school in Chester, that type of stuff. Originally Manchester born, though, so I have all of this. And I say that's not real Cheshire. That's Manchester Cheshire. And so I think that Fran here is, I think she's stoked Cheshire. Like Manchester, Cheshire. You're Stoke, Cheshire.
21:43Martin Lewis:Whereas I am Cheshire, Cheshire. The real Cheshire. The real Cheshire. I think for most people listening outside of the northwest of England or outside of it, this is a really, really, what on earth are you all going on about? But I do have a thing with the people who go, I come from Cheshire. And they're like, hold on, you know, you're in Stockport. It's really part of sort of the conurbation of Greater Manchester. I mean, it's only geographically by a boundary in Cheshire. Cheshire's a rural country. Anyway, I have probably offended lots of people. Let's move on. And if I have offended you, sorry, not sorry.
22:17Sorry, but not sorry. I can say I'm from Cheshire, but you can definitely tell from my accent that I'm from Stoke-on-France. Exactly, that's the point. I can't get away with it.
22:26Martin Lewis:Fran, what can we do for you? So I actually have both successes and questions for you. I like it. Yeah, whichever you want me to say. Let's do the successes first. Let's start on a high. So, I could tell you so many successes. Wonderful. I'm only 27, turning 28 next week. Happy birthday for next week. Thank you. Already, I've easily saved thousands of pounds because of your guidance. Oh, wonderful. Me and my partner bought our first house last year. Thank you. When we finished uni in 2020, I saw your advice for young people to open a Lysa, which I did and encouraged my partner to do the same. And over the years, we saved and we actually managed to get over£10 ,000 from the government collectively towards our first home.
Read the full transcript
23:17Wonderful.
23:18Martin Lewis:Wonderful. I'm so glad. So many people have the frustration with lifetime ISAs of the£450 ,000 limit. Obviously, in the north-west of England, that's much easier. I'm so glad it worked for you. Yeah, which is absolutely amazing. I also became a serial switcher in 2023 because of your guidance. Brilliant. Bank account switching, I presume. Yeah, bank account switching. I didn't keep track at the time, which I know isn't very savvy of me. But after looking through like a credit reporting app, I can see all the banks I opened and closed during the time. And I can see that I switched bank accounts at least 10 times, I think.
23:55And I'm pretty sure I got at least£100 to£300 each time. So I easily got over a grand from doing this.
24:03Martin Lewis:Just a quick question for you, because people, when they do that, they worry about the impact on their credit score. Did you find it was a problem at all? The only thing I regret doing was I closed my long-time bank account that I'd had since I was about 15, which did have an impact because banks like it when you've got longevity, don't they? They do. You really are a listener. I love you. Keep going. Keep going. So that's the only thing I regret doing. But other than that, I did, like, I stopped. I mean, I probably stopped sooner than I would have done because they have the limits, don't they, where they say you can't have it again if you've had it before.
24:42Martin Lewis:Yeah, you've been within 18 months or you've had a bonus before and they're getting tighter on that now, yes. Yeah, so, I mean, I probably can't do it anyway. But, yeah, that's probably the main thing that impacted me, yeah. But not so much anymore because I've had my other bank account for, like, five years now. So it's fine now, yeah. wonderful I mean those successes are amazing I love it I love it I mean it sounds like you live your life through the through the mantras and getting it right and being on top of it oh absolutely yeah everyone at work always takes the mick out of me for the like oh what's Martin told you to do now however I bet when they've got a question they ask you don't they yeah exactly yeah so they can take the mick all they like until the moment that they need you and then there's something like actually we're really pleased that you know all about this stuff because we need some help I understand you you're the mini me in your office yeah I am yeah and I went in to them the other week and I was like oh guess where I'm going next week and I'm going for free because of my Amex points and I got an Amex gold card because it was on your top card so yeah the joke's on them really isn't it exactly so I'm feeling a little bit of pressure now because you know off the easiest questions for the people who know nothing I mean, you're a pro already.
26:01Martin Lewis:So let's ask me the question. I'm slightly worried about the difficulty level here, but let's go for it. So my question's about stews in. Yeah.
26:13Because I'm always on the lookout for like the best current accounts and credit cards and things that have the best perks. And I've heard you talk about stews in a few times. And I think this is something I could manage. Like I pay all my credit cards off in full. In full. In full. But I think that's what makes me apprehensive about stoozing because is that an exception to the paying off in full? And do you think it would work better for me in the end to put the money I've spent in a high-interest account rather than using my rewards cards?
26:50Martin Lewis:So, I think it's a really interesting question. And I actually... You have got it wrong, but in a really good way. So I'm really pleased that you've got it wrong in a good way. So if I just dissect the in full and the reason that the reason it is I do it as a catchphrase and it's become something that people occasionally shout at me in the street and stuff like that. Is if you are using a credit card for perks. So, I mean, the main ones would be rewards like you clearly do or cheap spending overseas. then the way that you neuter the interest charging ability of a credit card is to pay off in full at the end of the month and it has to be completely in full as you'll know that if you've got a thousand pound debt and you pay off a thousand pounds there's no interest you've got a thousand pound debt and you pay off 999 pounds and 99p you're still charged interest that month on the entire thousand pounds and that's why the in full not most of it it's not try i don't say pay as much as you can.
27:49Martin Lewis:It's pay off in full. But that is the rule for when you're not borrowing. If you're borrowing, by definition, paying off in full doesn't work because you can't borrow. So if you needed a loan and, you know, someone like you who's savvy and on top of it all would probably, if you could get, if you could pay it off within a year or so, you'd use a zero percent credit card because there's no cheaper way to borrow than interest free. You have to be controlled and know what you're doing and plan it and all that, that you're capable of doing that. So then you would get that and then you wouldn't want to pay it off in full.
28:21Martin Lewis:And stoozing is effectively that. So the in full doesn't apply on stoozing because what we do when we stooze, and for those people who are listening and be thinking, what did she say? Stoozing? What's that? We're going to define stoozing now. Stoozing is deliberately creating yourself a false debt on a zero percent credit card. So you can take the debt, the money that you've built up in debt, and you can put it in a high interest savings account or cash ISA and you can earn interest on it. And so because by definition we're building up a debt, you don't want to pay off in full. The in full rule doesn't apply.
29:00Martin Lewis:And I'm delighted that I brainwashed you to in full. But in full, in this case, is a tactical thing that you don't want to do it. So look, I mean, at the moment with savings accounts paying nearly 5%. If you could build up a£5 ,000 debt and you would do it by doing your spending instead of rewards and you build that up and you get two years interest free and you go via an eligibility calculator to make sure which card you get. A£5 ,000 debt, a 5 % interest let's say for easy sums, well it's£250 a year. We'll take it off and say it took you some time to get the£5 ,000 on it because the way you get that put that debt on is you do normal spending.
29:38Martin Lewis:So because you're doing normal spending on the credit card rather than from your debit card or your other credit card, the money is building up in your bank account and you take your money from your bank account and that's what you save. But I mean, it could be 500 quid over a couple of years and you could build up an even bigger debt. And as long as you are keeping track of it, as long as you always have that money accessible that you could pay it off if you couldn't do a balance transfer and move it again at the end of the period, and you've got to make the minimum payments as well, then it can work.
30:06Martin Lewis:What do you think? I mean, I'm always nervous about telling people to stews, but after your preamble, I'm not very nervous with you. So I would only have to pay off the minimum payment and there would be no interest on the rest of it. Let's just pretend for a second. So you've just got a card. It's 0 % for two years. You want a 0 % for spending card. There's no fee on those. so month number one let's say making it up could be more than my life doesn't matter month number one your normal spending that you put on the card is 500 quid yeah yeah so because and you're someone who i can tell is balancing their budgets and everything because you haven't spent that 500 quid from your debit account your bank account you've got 500 quid more in your bank account than you normally would so you can put that 500 quid into a savings account yeah um you'll have to pay the minimum payment.
31:01Martin Lewis:You know, it might be 10, 20 quid on£500. So you'll pay that from your bank account. So you're probably putting£480 into the savings account. Next month, you spend another£500. You put another£480 from your bank account into the savings accounts. So after 10 months, you've got five grand of debt and you've gone up to your credit limit. You can't put any more on there. At that point, you would have already earned interest because you've had an average balance of£2 ,500 in the savings account that's earning you money, and the credit card's not costing you anything because you've got to pay the minimum repayments.
31:35Martin Lewis:Otherwise, if you don't pay the minimum repayments, you can lose a 0 % deal. So that's really important. You do that by direct debit, but only the minimum repayment. And then, so after 10 months, you've got£5 ,000 in there, and then you've got a remaining 14 months that you're earning interest on the entire£5 ,000. So, I mean, back of an envelope, that's probably£350 in profit that you are. Yeah. And that's how it works. It's just the paying off in full that has made me apprehensive about it. Well, I've done a good job because I brainwashed you and that is my intent. But remember, the paying off in full rule is the rule for rewards where you're not trying to get into debt.
32:12Martin Lewis:Here you are trying to get into debt. Yeah. But you're going to make money from it. And just for everybody else listening, this is not something to do unless you are a money nerd. and Fran, and I say this as a huge compliment, is a money nerd and hopefully, Fran, you're controlled on your budgeting, you're savvy, you understand it, you won't see this as an excuse to spend more than you earn or anything like that. All of those are danger signals in which case you're a prime candidate for stoozing. Okay, I'm going to give it a go then, thank you. Well, you know, you can dip your toe in the water, do it with a smaller amount to start with until you're comfortable with the way that it works.
32:47Martin Lewis:All of that's good. There's no, you have to push the envelope. There are people out there who use this on their offset mortgages and make huge amounts, but you've got to feel comfortable that you understand it. And I can't say where, but you'll know there are some good guides online you can read that will take you through it step by step. Yeah, OK. Thank you. Thank you for calling, Fran. I've loved it. I love you. You're brilliant. Thanks so much. In a purely avuncular way, I should note for anyone listening.
33:15Martin Lewis:What's your next question for me, young Matthew? Right, so normally at the end, we have a success, don't we? We do. And I would normally read it out. But when I put it into a list, I thought, do you know what? It'd be really nice to get this person on. So Kath is in Liverpool. What? Third caller? She's our third caller. I'm breaking the format. I can't compute. Don't know how to cope. Meltdown. Do I talk to the third caller like they're a caller or like they're a reader? I just don't understand how it works. Let's figure it out as we go along, Martin. Very, very not good at change, Matthew. I don't know how to cope with this.
33:54Martin Lewis:You've thrown this on me out of the... I don't know what I'm doing. Kath, I think it's just me and you. I think you're just going to have to do it. Oh, really? What have I got to do? Have I just got to... Hello, Kath. It's lovely to have you on. Unexpectedly. No, I'm sorry about that. Well, it's a bit unexpected for me as well. Okay, good. I'm staring daggers at Matt, even though he's in a different studio. I was actually just, we're in the ridiculous bit of the pod now. I'm sorry for taking this over and not doing that. But I was staring daggers at the microphone for some reason. I've got this big blue microphone in front of me and it's sort of got like a head shape cover on it.
34:36Martin Lewis:And I was staring at that like it was Matt. And I was giving the microphone, not real daggers, because I'm delighted to have you on board, of course, Cam. But anyway, so Matt, because Matt can see me, can't you? Yes. But I don't have a camera. I can't see Matt. So this microphone has become the personification of Matt in my eyes now. Yeah, you're viewing that microphone like his head. Yeah, exactly. But I don't have blue hair. No. Not today. Not today. Right, Kath, you've got a success. How lovely. Sorry about all that. I actually just sent a little email in because I was so stunned by this success.
35:13And it was, I actually followed your advice. Oh, good. You remember the thing you say about car insurance?
35:19Martin Lewis:Yes. About the sweet spot? Yes, 22, 23 days beforehand, yes. So around that time, I got my renewal, you know, and I usually auto renew. And it's been going down sort of over the past couple of years and I've stuck with the same people. And this year, it went up by over£300. and I thought, no, come on, just have a look. Just have a look at what you could get. And they quoted me£1 ,226 from my company provider. That was your renewal. Yeah, for auto-renewal. I did the thing that we're supposed to do, which is try and haggle with them, phone up. They'd knocked me£100 off. And I thought, no, that's no good.
36:07So I went on the comparison sites and I couldn't actually believe how low. And I thought, there must be a catch here. This can't be right. And so I put all the things on, all the whistles and bells, you know, no claims protection, all that. So everything I've got now. And the final quote that I took, adding everything on, was$637. Half price.
36:32Martin Lewis:Half price. Wow. And so, okay, that's really fun. And this was at the 22-day spot. It is exactly at that. Yeah, it's unbelievable. And is that cheaper than you've been paying in recent months because it went up 300? Yes. So you've been paying 800, 900 a year. Yeah, it had been. I mean, okay, it's fairly expensive. You know, I have to park on the street and all of those things. It had been 850. So it's naturally more than 300, isn't it? It went up to 1226. And I thought, what is it? And so it's cheaper than what I had been paying before. The sweet spot is so important. I mean, it's so bonkers. I mean, it's proper bonkers, isn't it?
37:13Martin Lewis:The day that you get the quotes makes a difference. But for those who haven't heard me talk about this before, the logic behind this is insurance pricing pricing is based on actuarial risk. It's based on the risk of you doing different things. And the people who will get a quote in advance tend to be less risky than the people who do it the day before. And so this sweet spot, it makes it, I mean, people are always gobsmacked when they see it for the first time, but it's proper. It's an absolutely real thing to do. Yeah. It's wonderful, isn't it? And the interesting bit was that, I mean, I don't have to say really, but it was one of those insurance, they're in the umbrella of a well-known name, shall we say, and the insurer is different.
37:58and again the quote I've got well I've accepted is again in the umbrella of another fairly well known name yeah but the actual insurer is the same one okay so I'm actually being insured by
38:12Martin Lewis:the same company yeah well they rebadge they rebrand so again really interesting on this yeah so you may you may have heard that they they got rid of the idea that uh existing customers could be charged more than new customers. Yes, they did. But the law on that is very specific. Existing customers can't be charged more than new customers going via the same channel. It's channel specific. So what that means is if you went by one comparison site, then the next year, a new customer going via that comparison site could not be given a cheaper price than you in exactly the same situation on the same comparison site.
38:50Martin Lewis:but they could be charged less on a different comparison site or going direct or buying through a different route. So there are a lot of loopholes in that law which is why the old rule, you know, and it was meant to get rid of the you can't auto renew in safety, you should always be checking insurance prices going back up, car on home. If you're listening out there, the sweet spot works on home as well, it's not as powerful. Yeah, you want to be doing it 23, Getting your new quotes 23 days before your renewal, roughly, and combining across the market. Thanks so much, Kath. Brilliant. What a great wait to end.
39:28Oh, and thanks. Thanks for the advice.
39:30Martin Lewis:My pleasure. My pleasure. Enjoy the saving. All right. Thank you. Cheers. So now we've done two reads. We've done three callers. Yeah, I know. It's an odd number. I don't understand. I enjoyed it, though. It was a very good caller. But still, doesn't let you off. We didn't have a funny or a scans one last week because you blamed GDPR for deleting them. And it was her fault. But yes, carry on. I am going to let the two of you have that, you know, who is your favourite child? I'm not getting involved in that debate between the two of you. I love you both equally. So do you have a funny and a scans this week?
40:09Martin Lewis:I do have a funny. I just did put myself in the pet, but I am the parent. Yeah, I suppose. In this relationship, you're in your late 20s, Rosie's in her early 30s, and I'm in my, I'm still claiming early 50s. 54, it's earlier than half, so it's early. It's nearly mid. It's early half. When is your birthday? What's that? When is your birthday? No, I've just had, May. Oh, right, okay. So, May, well, not just that. I think I texted you actually saying happy birthday. Yeah, you did, you did. No, I'm still, 54, I'm arguing is still early 50s, because it's not mid-50s. Okay. Shall I tell you of this question?
40:44Martin Lewis:Yes. I don't know what it is. Okay. Slightly concerning. Carry on. Question from Neil who emailed it in. I had to go digging for this one. So, you know, we put out a request for people to send funny questions in and no one has sent a funny question in. Esquire listeners, what is happening? I mean, you understand that this is a symbiotic relationship. Matt and I come on here, answer your questions, make a slight fool of yourself and have no fun whatsoever doing this, as you can tell by listening. And it's just, we do it in a hardcore way. And we ask, what do we ask of you? What do we ask people?
41:23Martin Lewis:We ask two things. You send us in your questions so that we can answer them and provide good financial information and education to the nation. And just to the end, to give us a lightness of touch, a frisson of joy, a fulfilment of fun. I quite like that. Yeah. We ask you to send us funny or askance questions. And you have not held up your end of the bargain. Well, get better. So what have you got? Neil says, dear, all the Matts who work for the BBC, there are quite a lot of us. Rosie, everyone else on Martin's team. He's included the Director General in that. And the only one with a genuine title presented by royalty.
42:01Thank you. Obviously, I don't have one. No.
42:03Martin Lewis:As part of your job? I was twice because I got an OBE, then an upgrade. Oh, yeah. So, yeah. Princess Anne the first time and then Prince Charles the second time. Yeah. Fancy. Anyway, he says, as part of her job, how's your wife, Lara? Ever bought home a piece of tech that's A, really annoyed you or B, you've loved so much you immediately purchased one? He says, love the show. Thanks for everything you do with the voice you have. Us muggles live a better and more educated and financially rewarding life thanks to you and your team. Oh, I like that. I'm having a think for a second Has she ever bought home any weird tech as well?
42:43Martin Lewis:We've had loads of weird tech We've even had weird tech that wouldn't be appropriate to talk about on here that we've not used, I have to say And she's covered some I do it on the side When she was working on Click at the BBC and it was something she was going to put on her social media it was about a type of toy that could be operated and remote controlled via an app via somebody else. And she did a piece on it on her social media. I phrased it in a way that is hopefully appropriate for all ages. Did a piece on it in her social media, and then there was this big discussion of whether it was appropriate or not.
43:21Martin Lewis:And it was a massive multi-million pound launch at the big tech show in Las Vegas, the CES. And I just thought, well, it is tech. It is tech, and it is a development. And, you know, that industry, the adult entertainment industry, many of the things that we have in modern life, you know, whether it's video cam technology, the whole thought of payment system online, a lot of it, it all happens in that industry first, as it has to develop it first. So it is part of the tech world. And that was me filling when I'm trying to think of a decent answer to the actual question. She did a report on a foldy phone.
44:02Martin Lewis:But not just a Foldy phone, the foldiest of Foldy phones. And it's not the new one that's just launched. I've had it for a while. And it was not on sale in the UK. And she did a report and I saw that and I like a Foldy phone. And I went, oh, that's very nice. Shiny. I would like that Foldy phone. And, you know, I tend not to be a first adopter of technology and it tends not to go, not to be something that really fits in with what I do. but then somebody I know a colleague who's worked with me for a long time happened to go to one of the countries where it was being sold and very lovely and wonderfully he bought me the foldy phone as a gift and it was I was incredibly grateful we worked together a very long time and he is a wonderful kind human being and he bought me the very foldy very special foldy phone that has never been on sale in the UK and it's foldier than any phone that's on sale in the UK and I have that foldy phone.
44:57Martin Lewis:So it was Laura's original report but it was a wonderful man who I'm not going to name on here but he knows who he is and he's an absolute superstar and he, having worked together for a long time, you brought me as a thank you for all the stuff that we've done and it was absolutely delightful and I was in tears when he gave it to me. So there we go. Aw, that's very nice. I think it's fine to admit that I don't normally say that. I don't tend to take gifts or stuff like that but it was very appropriate and it was very nice and I liked it very much and he's an amazing man. And that is it for this week's Question Time.
45:31Martin Lewis:Don't forget to subscribe so you know when we release a new episode. We put out a new Question Time episode each Monday alongside the Big Topic podcast with Adrian on Thursdays. Aren't you lucky? Two doses of money-saving tips and tricks a week. Make sure you send in your questions. Just email martinlewispodcast at bbc.co.uk and address it to dear Martin. Dear Matt. Dear Martin. It's dear Matt It's not And don't forget If you come on the show We'll send you an exclusive Martin Lewis Question Time ESQ badge Ooh Ooh You can't even let me have the last do Ooh He doesn't even let me have the last do Ooh I got meals I gotta pay So I'm gonna work For the world I gotta mouth I gotta feed I gotta feed So I'm gonna make sure Martin Lewis is the founder of MoneySavingExpert.com.
46:28But of course, other consumer and price comparison websites are available. You can get in touch with Martin's podcast production team by emailing martinlewispodcast at bbc.co.uk. The offers and rates mentioned in the podcast are correct at the time of recording. However, if you are listening on demand, it's worth double-checking as details can date. Remember to subscribe on BBC Sounds and leave us a review however you listen.
46:58As you say that, I'm picturing Megamind.
47:00Martin Lewis:I don't know what that is, but go for it. Google it. Not a compliment. Is it not? No. Rosie's just generated a picture of Megamind that just popped up on the screen in front of me. Okay, it wasn't a compliment. You're right. Carry on. We're meant to be doing proper stuff. This is a grown-up podcast, Matthew. Sensible, sensible. Right, okay. Get more with BBC Podcasts, wherever you listen. Be the first to listen to your favourite shows, like Evil Genius, Good Bad Billionaire and You're Dead to Me, with a subscription to BBC Podcasts Premium on Apple Podcasts. You can also enjoy a range of our podcasts ad-free with an Amazon Music subscription.
From the publisher
In our Question Time podcast, Martin Lewis gives you answers on anything and everything, including: if I haven’t filled up my ISA from last year, can I add the remainder now? What rights do I have when I buy goods secondhand if they’re faulty? My bank has done a strange thing; can you work out why? We hear from Fran, who’s become a huge money saving convert, saving thousands, and wants to know if it’s time to step up and become a stoozer (which is where you create a false 0% debt in order to save the cash at high interest). We’ve got a ‘sweet spot’ car insurance success, where Cath halved her costs by getting quotes at just the right time, and Martin tells you how you can too! Plus, has Martin’s wife ever brought home a piece of tech that he just had to go and buy for himself? If you want to ask Martin a question, you now can! His Question Time podcast lets you ask Martin absolutely anything and everything (within reason!). So, if you’ve always wanted to know how he likes his eggs cooked, what his dream car is, or you have a very complicated question about your finances, email it to MartinLewisPodcast@bbc.co.uk.