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The Rise of Instalment Loans in the UK

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With constant cash shortage and low credit scores, borrowing additional credits could seem like the most favourable choice, but it can be a terrifying chore too. As debt is a liability and needs to be repaid on time. In the inability of extensive cash flow, you need to think about a firm backup plan for loan repayment before raising any further credits. After all, a track of bad credits could direct you towards a debt trap.

People go through phases in life, when they struggle to manage their finances and start questioning if a loan might be the answer. And it often can be! The notion of taking out a loan can be a little distress because nobody desires to get into debt slope. But sometimes- a loan can be the answer to classing out a financial problem including debts, and may even save you money in the long course.

The official figures show that Brits took out 1,077,292,050 in high-cost short-term credit (HCSTC) finance in 2018 and owe 3,320 in unsecured debt, with the average debt-holder owes 9,570. This Data Source is available for Download from Daily Mail UK.

Loans are the cornerstone of many individual’s personal finances, and before we move to different sorts of unsecured credits that Brits take the most, it is vital to examine the major reasons to opt for the loan in the first place.

Why Brits Take Instalment Loans?

 Rise of the gig economy

The gig economy is one of the reasons that’s pushing many Brits towards Instalment Loans.

The data registers there are 4.8 million self-employed people in the UK- with 69% of men and 31% women, who take on short-term or freelance work instead of perpetual employment to earn money. These include cab drivers, food drop-offs, and parcel delivery. And with the gig economy expanding in cities like London, working circumstances are becoming more unstable, which is creating situations for people to borrow funds to survive. However, this employment trend, with a handful of organisations- like Uber, a key player in the gig economy, is facing legal action and employment tribunals encircling the employment rights of “gig economy workers”.

This industry surveys both the pros and cons attached to it- with more disadvantages that lead people to opt for a credit to keep moving.

  • Variable employment: Many platforms can give workers with a regular flow of jobs, but for people working in the freelance space it doesn’t work the same. Employment is rarely guaranteed.
  • Tax obligations: Like all self-employed people, gig workers have to follow and pay their taxes. This can be unusually complex for those in the gig economy because they may serve many different jobs across various sectors.

 Zero Hour Contract

In the United Kingdom, under the National Minimum Wage Act 1998, workers working under a zero-hour contract must get the minimum wage for hours they have worked. But for other countries, it isn’t mandatory.

Primarily, a zero-hour contract is a type of contract, where the employer is neither bound to provide any minimum working hours, while the worker is nor compelled to accept any work offered. The employee may confirm an agreement to be available for work with no particular number of hours or times of work defined. Depending on the extent and conditions of work, a zero-hour contract may differ from casual work.

In the report of Walking on Thin Ice, the charity continued that in 2017 nearly half (48%) of UK adults encountered at least one monthly drop in their income, as families with crushed budgets have become increasingly exposed to income shocks. To keep on sustaining they claimed extra aid from external sources like- online lenders and brokers, and there Instalment Loans for Poor Credits gained more reputation.

 Wage Stagnation

Stagnation is an extended period of weak or no growth in an economy. The economic growth of less than 2 to 3% annually is measure as stagnation, and it is highlighted by years of high unemployment and automatic part-time employment. Stagnation is a condition- that occurs within an economy when total production is either decreasing or rising slightly.

The UK had the lowest wage growth of any G7 country over the past decade, according to the OECD, despite financial growth and strong employment. The share of people in the UK without a job is now less, but average real wages decreased by an average annual rate of 0.3 per cent.

The Brexit referendum has an impact on real wage growth and inflation- even when the UK employment market continues to tighten.

Despite an increase in earnings, income inequality has increased, leading, even more, to feel they aren’t holding up. While the stock market has benefited those with savings, most individuals don’t feel the same.

Wage stagnation is not just the only problem for Brits, but the wage growth is also missing its action, which is creating an uncertain situation. Also, this slow wage growth is causing slow labour productivity growth in the UK.


Unemployment is a state when a person who is actively exploring for employment but is unable to find employment. It’s used as a gauge of the health of the economy.

The measure of unemployment is the unemployment rate- which is deliberate by unemployed people divided by the total number of people in the labour force. UK unemployment figures show that there are about 3.9% of the people and workless households, who are of 16 years and above.

Unemployment is one of the causes of poverty in the UK. Extended periods of unemployment is pushing households into debt and increasing the rates of poverty. Due to this, more and more people are getting incline towards loans, and online credits as these sorts of financing are helping them to stabilize their life and budget everyday essentials.

How Instalment Loans Are Helping Brits

Instalment Loans can be both secured & unsecured. Therefore, it fulfils different requirements of a borrower and gives him a chance to choose how they want to employ the loan.

Here are a few benefits of the loan:

  • Longer terms mean lower monthly payments.
  • Builds credit scores.
  • Helps to consolidate debt.
  • Available for every credit type.
  • Regular monthly payments with a longer repayment term.

Instalment Loans from Oyster Loan

We’re about you and put you in control as we are borrower centric firm. We make sure that we work best to help borrowers and build a relationship that aids them to manage their financial arrangements. That’s why we offer Instalment Loans and Poor Credit Instalment Loans with No Guarantor.

To apply for the Bad credit Instalment Loans at Oyster Loan, Click here.