Retirement often comes with a fixed income, but that doesn’t mean unexpected expenses disappear.  From rising healthcare costs to home repairs and lingering debt, retirees may face financial gaps that savings alone can’t cover.

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In the right circumstances, a personal loan can be a smart, strategic tool to manage those challenges. While borrowing in retirement requires careful consideration, here are five reasons retirees could consider taking out a personal loan.

Withdrawing from retirement accounts prematurely can trigger taxes or penalties. A short-term personal loan may offer a buffer, giving investments more time to grow or delaying taxable withdrawals.

“Retirees and those nearing retirement tend to be super cautious about loans, and part of the reason for this is that they believe that by the time they are retired, they should have completely fulfilled their debt obligations,” said Aaron Razon, a personal finance expert at Couponsnake. “They, however, forget to factor that in a significant way, loans are leverages, opportunities to tap into financial resources that can enhance retirement security.”

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Some retirees carry credit cards or other high-interest debt into retirement. A LendingTree analysis found that over 97% of U.S. retirees have non-mortgage debt. Among retirees in the country’s largest cities, the median non-mortgage debt is $11,349.

Using a personal loan to consolidate balances can lower interest rates, reduce monthly payments and simplify finances.

“A 67-year-old retiree needs $20,000 to pay off an existing high-interest debt that has been a major strain on her monthly budget causing her to fall behind on other bills and accumulate late fees as a result,” Razon said. “So she takes out a personal loan with a 10% interest rate and a three-year repayment term to consolidate her debt into a single manageable monthly payment, which allows her to reduce her financial stress and save on interest charges.”

Even with Medicare, out-of-pocket costs and uncovered procedures can quickly add up. According to the latest data from the Consumer Financial Protection Bureau (CFPB), around 4 million older adults reported having unpaid medical bills. And that’s despite the fact that nearly all of them (98%) had health insurance.

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CFPB researchers found that much of the unpaid medical bills were due to billing inaccuracies. “CFPB findings suggest that providers are billing older dual beneficiaries for amounts they don’t owe,” CFPB researchers said.

While a personal loan can’t resolve billing inaccuracies, it can tide retirees over until billing disputes are resolved without draining savings or disrupting investments.

Whether it’s relocating to a retirement community, helping a grandchild with college or downsizing, a personal loan can offer short-term liquidity for big life changes.

Razon said personal loans offer fixed interest rates and predictable payments, making them a budget-friendly option for retirees on a fixed income.

“In a personal loan, retirees should look for competitive interest rates, and flexible repayment terms, and make sure to borrow an amount that is sufficient for their needs without overburdening themselves,” Razon said. “They should also look for a repayment schedule that fits their income and expense cycle and verify the lender’s reputation.”

Even in retirement, unexpected financial hiccups can occur. A delay in Social Security payments, pension distribution delays or the sale of an asset can create a short-term income gap, putting a strain on daily living expenses.

Rather than turning to high-interest credit cards or withdrawing funds from retirement accounts, which could trigger taxes or penalties, a personal loan can provide quick and predictable funding.

With fixed payments and a clear payoff timeline, it can provide a manageable solution that avoids long-term financial disruption.

“A personal loan is like fire,” said Stoy Hall, CFP, CEO and founder of Black Mammoth, a wealth management company. “Used right, it can warm your house or cook your food. Used wrong, it burns your whole financial future down.”

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This article originally appeared on GOBankingRates.com: 5 Reasons Retirees Should Consider Taking Out a Personal Loan