Salary Sacrifice Loans Scheme

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?

Comments

  • 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.
  • 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
    Signature on holiday for two weeks
  • jaybeetoo
    jaybeetoo Posts: 1,352 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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
    boo_star Posts: 3,202 Forumite
    Part of the Furniture 1,000 Posts
    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.
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