By Christina Roman, Consumer Education and Advocacy Senior Manager for Experian
In a financial landscape where everything can feel more expensive, from daily essentials to monthly credit card bills, consumers are looking for tools that give them back some control. More people are now turning to personal loans as a flexible option that brings clarity and structure to their financial planning.
A recent analysis shows that 38 percent of U.S. consumers now carry at least one personal loan, a number that has risen every year since 2017. With the average credit card annual percentage rate (APR) climbing just above 22 percent, many people are rethinking how they manage debt and seeking options that offer stability and predictable payments.
Consumers are not only using personal loans more often, but they are also borrowing more too. Balances increased from 192.9 billion dollars in 2024 to 207.1 billion dollars in 2025, a rise of more than 7 percent. Lender hard inquiries also jumped 16 percent, showing that more people are actively comparing their options and exploring personal loans as part of a broader financial strategy.
Personal loans are becoming a key part of the modern financial toolkit for people who want a defined payoff plan. They offer two qualities that are key to helping consumers plan out their finances, predictability and transparency. With fixed interest rates and a set payoff schedule, these loans can help bring order to a budget that may otherwise feel chaotic. They may often be used to consolidate high-interest credit card debt or cover large, planned expenses. A consistent payment can make long-term planning more manageable and provide stability.
Smart Borrowing Still Requires Strategy
Even with their advantages, personal loans are still debt, and they should be considered thoughtfully within the context of a person’s full financial picture.
Anyone evaluating a personal loan should focus on three essential steps.
1. Know Your Numbers
Study your budget closely. Make sure the monthly payment you commit to feels sustainable, not overwhelming.
2. Compare Before You Commit
Interest rates can vary widely across lenders. Use trusted marketplaces to simplify comparisons and uncover the best rates and terms.
3. Understand the Full Cost
A lower monthly payment might seem appealing, but a longer loan term can increase the total interest you pay. Review the full terms of the loan, including the length, total cost, and any associated fees, so there are no surprises down the line.
Finally, consumers should remember that there are resources available to help them throughout every stage of their lives. In fact, Experian is amplifying tools and messaging that empower consumers when finances feel overwhelming. Its newly refreshed “Big Financial Friend” campaign, starring actor Sam Richardson, reintroduces him as a larger‑than‑life BFF who brings humor, clarity, and grounded guidance to moments when financial stress takes over.
The rise in personal loan usage shows that people are becoming more intentional and more empowered in how they manage their finances. With thoughtful planning, a personal loan can bring structure to a budget, reduce stress, and support long term financial goals.
More About Christina Roman
Christina Roman is Experian’s Consumer Education and Advocacy Senior Manager. Christina serves as an expert spokesperson on consumer issues, including credit reporting, credit scoring, saving and other personal finance topics.
