Salary Sacrifice Loans Scheme

em4olly

MY employer has recently introduced an option for finance with payments taken direct from my pay packet, offered by a company called Salary Finance.
I currently have around £8000 of credit on credit cards and was wondering if this would be a better option for me?

foxy-stoat

Nothing on that site states what the APR is going to be - looks BS.

Your better off getting everything onto 0% or low interest credit and overpay where you can.

Mutton_Geoff

em4olly wrote: »

MY employer has recently introduced an option for finance with payments taken direct from my pay packet, offered by a company called Salary Finance.
I currently have around £8000 of credit on credit cards and was wondering if this would be a better option for me?

It's very misleading to call it a salary sacrifice scheme as these are special tax avoidance methods usually used for pensions & cars, not a taxable benefit like a loan.


Reducing your apparent salary can be a bad move for borrowing purposes as it appears as if you earn less. You may be better servicing your debt through more traditional methods.


https://www.moneyadviceservice.org.uk/en/articles/salary-sacrifice-schemes

jaybeetoo

I heard something like this discussed on BBC radio recently. The scheme discussed was a salary advance scheme. The cost of it sounded very reasonable compared to a loan. It only allowed you to get your salary a few weeks early so was not for big, long term loans. Unless you are on a big annual salary, I don’t think it would advance you £8000.

The scheme you are referring to may be different to the one I heard on the radio.

boo_star

jaybeetoo wrote: »

I heard something like this discussed on BBC radio recently. The scheme discussed was a salary advance scheme. The cost of it sounded very reasonable compared to a loan. It only allowed you to get your salary a few weeks early so was not for big, long term loans. Unless you are on a big annual salary, I don’t think it would advance you £8000.

The scheme you are referring to may be different to the one I heard on the radio.

Entirely different and something that's being cracked down upon, hence the discussion on the radio.