Consolidate Your Debts And Pay Them Off Using Bitcoin

The average American household is carrying around $8000 in credit card debt alone, not to mention student loans and mortgages. This is a crisis that has gone out of control, but in order to deal with it, people are getting creative. One way you could start to repay some of these debts is by investing in Bitcoin. Obviously, there are few lenders who accept cryptocurrency as a form of repayment. Until this changes, you will have to be a bit more clever. Start by consolidating your debts and then invest the money saved in Bitcoin. Any profits made on this investment can then go towards paying off your debts.

The Benefits Of Debt Consolidation

Money management company Crediful assert that those with a poor credit rating can manage their situation by taking out a new loan to pay off the old one. This is known as debt consolidation, and is a way of organizing finances. It leaves you with just one monthly payment, making it easier to keep on top of repayments. This also generally comes with a lower interest rate. Therefore, the overall amount you pay back will be lower. You are then able to explore alternative methods to raise the funds and get everything repaid as quickly as possible. This is when you start buying Bitcoin.

Use Bitcoin Profits To Make The Single Monthly Payment

Once your debts are consolidated, it is easy to view your financial income and outgoings, and determine how much you can afford to invest in crypto. Experts predict the value of a Bitcoin will hit more than $1 million in 2020, with no signs of a slowdown in growth. Never invest more than you can afford, but small investments are likely to pay off.

At the beginning of every month, take a small amount from your income and buy some Bitcoins. At the end of the month, check the value once more. If you have made a profit, then sell it and use this profit to pay your monthly loan repayment. Repeat this every month until all your debts have been paid off. It is a simple process, and while it is not foolproof, it could ease the burden of debt.

Debt is an all too common occurrence in the USA and nothing to be ashamed of, but repaying it quickly is vital. Start by consolidating your debts into one payment with a lower interest rate. You can then see exactly what your income is and how much you owe. Invest a small amount in Bitcoin, so that you can still afford to pay your debts if you don’t make a profit. If the cryptocurrency does increase in value, then you have a way to repay debts and return to financial security quickly.