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Paying Down Credit Card Debt with Crypto

Published, 17 September, 2020

Consumers are increasingly aware of debt and the threat it can be to a person’s financial future. According to Experian, the average American had a credit card balance of $6,375 in 2017, up nearly 3 percent from the previous year. And according to Make Lemonade, there are more than 44 million borrowers who collectively owe $1.5 trillion in student loan debt in the U.S. alone, with the average student in the Class of 2016 carrying $37,172 in student loan debt.

With the threat of compounding debt looming over many, crypto investors now have a way to leverage their cryptocurrency assets towards paying down their high-cost debt. This is also referred to as refinancing debt, where a borrower takes out a new loan at a lower cost to pay off a more expensive loan.

BlockFi allows crypto investors to refinance debt using their digital assets without having to sell.

Paying Down Credit Card Debt with Crypto

Credit card debt delinquency rates skyrocketed during the Great Recession in 2008. In the aftermath, we saw those rates begin a steep downtrend. Now, over ten years later, the number of Americans defaulting on credit card debt is rising, according to CreditCards.com.

For crypto investors, there is now a way to pay down your high-cost debt with a lower-cost loan from BlockFi. A BlockFi interest rate starts at 4.5%.

Don’t just take it from us. Clients are already having success relieving their debt burden.

"It feels great to have my crypto be recognized as a real asset, which can used as collateral," said Casey R, a first-time BlockFi client. "I’m going to be able to immediately pay off a credit card I’ve been carrying a balance on."

How does a BlockFi loan work?

Can I Pay Down Student Loan with Crypto

Student loan debt can add up fast. Rates for student loans continue to grow, with interest rates rising for the 2018-19 school year. Depending on your credit history and other variables, your loan can be a burden in the long term. Additionally, most student loan debt carries higher monthly payments, even in situations with longer loan terms.

According to NerdWallet, some student loans have interest rates up to 14.53%.

Image Source: NerdWallet.com

For a growing segment of the population, paying down student loan debt with crypto is becoming a reality. With BlockFi, our client service team works closely with each of our clients to get the best rates for everyone’s financial situation. For example, a $50,000 loan over 10 years has payments of $530 per month, compared to $354 per month over 1 year with BlockFi.

BlockFi clients often contact us to discuss refinancing debt with crypto assets. In some cases, we are able to offer more competitive interest rates and APR than their existing debt. Additionally, since BlockFi has interest-only payments, the price of the loan become significantly more manageable. By lowering this monthly cost for our clients, we make it easier for them to get back to a healthy financial situation. Click here to learn more about how interest rates and APR are calculated.

Why apply for a loan with BlockFi?

At BlockFi, we understand the frustration that comes with paying down debt. Our team of lending professionals work closely with clients to make sure that they’re getting the best possible rates. The best part? It takes less than 2 minutes to apply.

Have questions? Contact us here!

Last updated on June 14th, 2022

As of February 14, 2022, the BlockFi Interest Account (BIA) is no longer available to new clients who are US persons or persons located in the US and existing US clients with BIA accounts are unable to transfer new assets to their BIAs. Learn More.

BlockFi Lending LLC NMLS ID#1737520 | NMLS Consumer Access

BlockFi Trading LLC NMLS ID#1873137 | NMLS Consumer Access

Digital currency is not legal tender, is not backed by the government, and crypto accounts held with BlockFi are not subject to FDIC or SIPC protections. Digital currency values are not static and fluctuate due to market changes. Not all products and services are available in all geographic areas and are subject to applicable terms and conditions. Eligibility for particular products and services is subject to final determination by BlockFi. Rates for BlockFi products are subject to change.

BlockFi Rewards Credit Card: For more information, please see BlockFi’s Terms of Service. BlockFi is not a Bank. Cards are issued by Evolve Bank & Trust, Member FDIC, pursuant to a license from Visa® USA Inc. Rewards are not offered by Evolve Bank & Trust and are instead offered and managed by BlockFi.

BlockFi International Ltd. holds a Class F digital assets business license under the Digital Assets Business Act, 2018 (as amended) and is licensed by the Bermuda Monetary Authority to conduct the following digital assets business activities: (i) issuing, selling or redeeming virtual coins, tokens or any other form of digital assets (ii) operating as a digital asset exchange (iii) providing custodial wallet services (iv) operating as a digital asset derivative exchange provider and (v) operating as a digital assets services vendor.

See blockfi.com/terms for more information.

BlockFi Lending LLC NMLS ID#1737520 | NMLS Consumer Access

BlockFi Trading LLC NMLS ID#1873137 | NMLS Consumer Access

See blockfi.com/terms for more information.

Paying Down Credit Card Debt with Crypto

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Paying Down Credit Card Debt with Crypto

Can I Pay Down Student Loan with Crypto

Why apply for a loan with BlockFi?

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