Low on Liquidity, High on Credit? Here’s a Financial Move Worth Considering

A six-figure salary doesn’t guarantee financial flexibility or positive cash flow. As income rises, so do expenses and financial obligations. Things like higher taxes, strategic investments, or the costs to maintain a business can drain big paychecks faster than you think. The tendency of high earners to face financial struggles and low liquidity is known as the wealth paradox.

A recent survey of our customers found that 52% of BHG borrowers earning more than $100,000 annually feel like they don’t have enough saved for emergencies. Furthermore, 68% have $10,000 or less available in their checking and savings accounts. This suggests that despite high incomes, readily accessible cash reserves can be surprisingly low.

Irregular cash flow stemming from bonuses and commission-based incomes makes it harder to build up cash reserves and balance spending. A 2016 Federal Reserve survey comparing income and spending found that 8% of higher-income households reported running an income deficit, while 17% only “broke even.”

Pair a lack of liquidity with recent economic headwinds, and it may explain why Americans continue to feel cash-strapped, no matter how much they earn. New 2025 data from the Ludwig Institute for Shared Economic Prosperity’s True Living Cost report indicates that the cost of affording basic economic security (including housing, food, healthcare, education, transportation, technology, and more) has nearly doubled, rising 99.5% between 2001 and 2023—this is 38% faster than the Consumer Price Index.

Credit-rich, cash-poor: Understanding the trade-off

Many higher-earning professionals wisely prioritize paying off high-interest debt or investing surplus cash to grow their wealth. While this is a smart long-term strategy, it can leave you ill-equipped to deal with unexpected emergencies or capitalize on unique opportunities. Finding high-credit, low-cash-flow solutions is key to balancing it all. Personal loans for high-income earners with high credit can help you maintain financial flexibility and build long-term wealth.

Getting a personal loan can be a smart way to access funds when you need them—especially if your strong credit profile qualifies you for premium rates and terms.

Unlock liquidity without selling assets

One of the most significant advantages of a personal loan is the ability to acquire short-term funds without having to dip into your retirement accounts or liquidate assets and investments. In some cases, selling assets to access fast cash could have negative consequences.

Withdrawing from a 401(k) or IRA before age 59 1/2 will likely result in a 10% early withdrawal penalty on top of regular income taxes. Similarly, selling investments, such as stocks or real estate that have appreciated in value can trigger capital gains taxes, reducing the amount you actually receive.

A personal loan allows you to meet short-term cash needs without sacrificing your wealth-building efforts.

Premium credit helps with premium loan offers

Borrowers with strong credit profiles—those with excellent credit and a higher income compared to their debt—typically qualify for the most competitive rates and flexible terms. Personal loan APRs typically range from 6.99% to 35.99%; however, personal loan rates for excellent credit will generally fall on the lower end of this range. 

With excellent credit, you may also qualify for a higher loan amount and more flexible repayment terms, which can be helpful for managing your finances effectively. A history of responsible financial management also unlocks the ability to secure a loan without putting up collateral, such as your home or other valuable assets.

Financial planning for high earners should include personal loans, which can be a smart tool when used strategically.

1. Consolidate high-interest debt

Even high earners can accumulate expensive debt, especially when managing business expenses or holding multiple credit lines. Consolidating high-interest debt, such as credit card balances, into a single personal loan with a lower interest rate can significantly reduce your monthly payments and free up valuable cash flow.

For example, a business owner earning $175,000 per year (with some seasonal fluctuations) might be burdened by day-to-day expenses and multiple credit card balances used to fund startup costs. Consolidating their debt using a BHG personal loan (see below) could streamline their finances, lower their monthly payment, and result in considerably lower interest over time.

2. Fund large purchases or opportunities

When liquidity ebbs, a personal loan can provide the quick funds needed to seize a timely opportunity or make a significant purchase while your other assets continue to grow.

Major life expenses can present affordability challenges, even for high earners. Managing things like significant medical expenses, mortgages, and family needs can feel overwhelming. With a personal loan, you can access the necessary cash flow to plan for large expenses.

Tailored for high-earning professionals

Our personal loan products are designed with high-credit professionals in mind. We understand the nuances of your income streams and financial obligations, enabling us to offer tailored solutions that truly align with your lifestyle.

White-glove lending experience

We believe that borrowers deserve a tailored lending experience that matches their level of success. That’s why we offer fast approvals, concierge-level service, and the ability to preview offers without impacting your credit score.¹ BHG respects your time and provides a streamlined process with minimal documentation requirements.

Flexible terms that fit complex lives

BHG’s fixed-rate loans may offer lower APRs compared to traditional lenders and larger loan amounts up to $250,000,² particularly for borrowers with strong financial profiles. Additionally, you can extend your repayment terms up to 10 years.^2,3 This helps keep your monthly payments manageable so you can maintain, or even increase, your cash flow.

For high-income earners, leveraging your credit strength through a personal loan isn’t just about managing emergencies—it’s a strategic way to provide financial agility. A personal loan can be one of the most effective high-credit, low-cash-flow solutions available to you because it allows you to access the cash you need, when you need it, all while preserving your long-term investment strategies and wealth-building efforts.

Explore your personal loan options with BHG Financial—no credit impact to view your offer.¹