cb25
Posts: 3,524 
Likes: 2,667
|
Post by cb25 on Jul 1, 2018 15:44:10 GMT
I saw an article in the Sunday Times today (print edition, hence no link). Website: joinstepladder.com/. Purpose: "Our members work together to raise their property deposit on average 45% faster". People join a savings 'circle' to save their house purchase deposit. If all goes well, all but one member get their deposit early, BUT at the expense of 3-5% fees.
Example given is 6 people who each need to save £1000/month for 6 months (simple, but not very realistic, example) -in month 1, everybody saves £1,000, total of £6000 may be awarded to person 3, has their deposit 5 months early -in month 2, everybody saves £1,000, total of £6000 may be awarded to person 6, has their deposit 4 months early -in month 3, everybody saves £1,000, total of £6000 may be awarded to person 2, has their deposit 3 months early -in month 4, everybody saves £1,000, total of £6000 may be awarded to person 1, has their deposit 2 months early -in month 5, everybody saves £1,000, total of £6000 may be awarded to person 4, has their deposit 1 month early -in month 6, everybody saves £1,000, total of £6000 will be awarded to person 5, has their deposit as expected
Even when you're awarded your deposit of £6,000 you have to keep saving £1000/month, so that everybody else gets their deposit.
Good: you may get your deposit early Bad: loss of 3-5% fees, money at risk as it isn't FSCS protected
|
|
cb25
Posts: 3,524
Likes: 2,667
|
Post by cb25 on Jul 1, 2018 17:51:07 GMT
That's clearly one of the risks.
|
|
jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,745
Likes: 3,138
|
Post by jonno on Jul 2, 2018 9:05:57 GMT
Wasn't he finally ousted by UEFA a couple of years ago?
|
|
jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,745
Likes: 3,138
|
Post by jonno on Jul 2, 2018 9:38:59 GMT
Wasn't he finally ousted by UEFA a couple of years ago? No you are confusing him with Septic Bladder. Are you taking the p*ss?
|
|
macq
Member of DD Central
Posts: 1,924
Likes: 1,192
|
Post by macq on Jul 2, 2018 12:29:30 GMT
sounds like a pyramid of sorts and i have heard of schemes like this over the years using other products i.e 30 odd years when an Album cost £2 there was a couple of mini club's of 4 people at work who would let one person per week buy the LP and keep it while the other 3 could borrow it and tape it if they liked it.
|
|
cb25
Posts: 3,524
Likes: 2,667
|
Post by cb25 on Jul 2, 2018 14:07:21 GMT
I don't think it's a very good scheme (all too easy for members to overlook the 3-5% fees), but I don't see it as a pyramid as it doesn't require a continual stream of new members to make it work. More like a savings club with StepLadder taking a small chunk of the money.
|
|
|
|
Post by gaspilot on Jul 3, 2018 6:00:55 GMT
I'm very fond of my stepladder. I never really knew my real ladder. Sorry, couldn't resist.  |
|
aligibbs
Member of DD Central
Posts: 69
Likes: 25
|
Post by aligibbs on Jul 18, 2018 17:37:25 GMT
Wonder if Stepladder have taken some kind of insurance to stop some people from disappearing? Also, I guess you would have to declare it on mortgage application as well? Unless you expect to pay it off before getting mortgage (in which case, why did you need it anyway?)
|
|
