Paying Off Debt With Crypto?
I haven't done this yet, but I do have a small amount of debt that I'm considering paying off with crypto gains.
It occurred to me that there must be a lot of people out there paying off student loans, mortgages, business loans, and credit card debt with their profits from investing in cryptocurrencies.
And if you already have that extra extra lying around, why not? Sounds like a great decision...except that you don't know if that investment might triple, quadruple, or 10x by this time next year. (That's why I'm still just considering paying off my small debt with crypto, instead of gung-ho about it.)
And it would be riskier to invest in crypto with the goal of using your gains to pay off debt. Who knows if your chosen coin or token will flail after you've made your investment? You could get lucky (and with certain crypto projects, the chances of getting lucky are much higher than others) but on the other hand you could lose money and be worse off than if you'd just allocated that investment toward paying off the debt instead.
And then of course there are those stories about people going into debt to buy crypto. Yeah, don't be that guy.
I wanted to ask the Steemit community about this topic. Have you paid off any debts with crypto? Was it an investment planned for that purpose, or did you just hit some big gains and decide to direct part of it towards a credit card or loan? Are you considering doing this?
What's really interesting to me is that with Americans so heavily indebted at this point in time (especially millennials) that crypto enthusiasts and early adopters might be on the cutting edge of a turn to a debt free lifestyle, and all because of those beautiful gains!
Hi, I'm Starr!
I believe all human interactions should be consensual
Time to sell is when taxi drivers in new york or london are starting to give investment advices for cryptos :)
Times to pay off debt this year will be when bitcoin is about $40,000 and $100,000 dollars.
Probably about 7th month and 12th month.
Sell when everyone seems to be going nuts about cryptos.
That's what I've been thinking. ;)
I did it. I paid off debt.
Consider...what's the interest rate on your debt. Are you just getting deeper and deeper in the hole? If you have some Crypto gains...eliminate the debt.
You can earn more with Steem.
The debt in question is in a promotional interest-free period.
even better...pay it off before the interest kicks in.
at a guess...the interest rate will be HIGH.
I've seen some over 25%
It's pretty high but not that bad. 25%, jeez!
actually i've seen worse...
at some point you pay youre monthly minimium payment.
and your balance INCREASES!
because of the high interest
that's bad.
I've paid part of my rent with crypto but I'm not willing to cash out to eliminate the debt I still have. I like having around in case of an emergency.
I would consider paying down debt either with fiat if possible or crypto if at a high point in the market. Consider that you are paying interest to bankers and that when you eliminate this you are one step closer to financial freedom. I'd pay the debt.
I'd borrow 20K and drop it into EOS tomorrow if I thought the bank would lend me the cash.
Your yearly return on crypto is likely to be higher than your interest rate on the debt. Getting out of a crypto position to make your position with fiat creditors better sounds like a bad idea, especially when they can't collect your crypto if they try.