Think personal loans are just for emergencies or credit card debt? Think again. In 2025, people are getting a lot more creative — and strategic — about how they use personal loans.
From funding passion projects to smoothing out life’s unpredictable twists, a personal loan might be the tool you didn’t know you needed.
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“Getting a personal loan is not just about debt consolidation or emergency cash; it can be a strategic financial tool when managed properly,” said Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at GrowthLimit.
Here are a few smart, surprising reasons to consider one this year.
Financing Intangible ‘Human Capital’ Investments
Sure, personal loans can help you renovate a bathroom or cover an unexpected medical bill — but what about upgrading yourself?
According to Shirshikov, investing in professional development — like specialized training, certifications or executive coaching — can yield serious returns.
In fact, he said these kinds of skill-building investments can boost your earning potential even more than a traditional degree. Think: finally getting that project management certification that bumps you into a higher salary bracket or working with a coach to refine your leadership skills before asking for a promotion.
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Investing in Preventative Health or Wellness Programs
We all know that health is wealth — but unfortunately, it’s also expensive.
According to the American Medical Association (AMA), health spending in the U.S. increased by 7.5% in 2023 to $4.9 trillion or $14,570 per capita.
Medical bills are the No. 1 reason Americans file for personal bankruptcy, Shirshikov said. Yet ironically, many people skip preventive care, therapy or wellness programs because of the upfront costs.
Whether it’s a mental health program, physical therapy, nutritional coaching or even a sleep specialist, these kinds of services can feel out of reach when you’re paying out of pocket.
That’s where a personal loan can step in — not just as a safety net, but as a proactive tool. Instead of waiting for a health crisis to derail your life and finances, using a loan to invest in your well-being now could save you thousands later. Think of it like fixing a leaky roof before it floods the house.
Fund an Exit From a Toxic Business Partnership
Shan Abbasi, director of business development at PayCompass, has seen debt used creatively to untangle complex business and personal financial issues.
He said one reason for taking out a personal loan is to fund an exit from a toxic business partnership.
“Often, a small business owner or contractor may find themselves in a 50/50 partnership that’s draining their mental health or stalling business growth, but they can’t exit without buying out their partner’s share,” Abbasi explained.
He said taking a personal loan to finance a $20,000 to $50,000 buyout may initially increase personal debt but can liberate you as the owner to rebuild your business on healthier terms.
“This is a calculated risk, but if the business has clear potential and the partnership is the primary bottleneck, the debt becomes a path to reclaiming autonomy and rebuilding profitably,” he explained.
Experts agree that people often view personal loans only as tools for emergencies or consumption, but they can be strategic lifelines for regaining control when you are stuck in a financial structure that no longer serves you.
“It’s about using debt for freedom, not just for survival,” Abbasi added.
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This article originally appeared on GOBankingRates.com: 3 Reasons To Take Out a Personal Loan That You Might Not Have Considered in 2025
