Paying Down Credit Card Debt with Crypto


Ever since the 2008 recession, consumers are increasingly aware of debt and the threat it can be to a person’s financial situation. 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.

If you have any questions about BlockFi or how our loans work, please contact us at support@blockfi.com. We love hearing from you.

BlockFi lets you use your Bitcoin, Ether, and Litecoin to do things like buy a home, pay down debt, or even fund your business without having to sell your crypto. Start your application now and get funded in as few as 90 minutes.

How a Bitcoin loan works

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Client Testimonials

PEOPLE ARE SAYING

As an investor with significant crypto holdings, BlockFi gave me a valuable tool to get capital, at a fair price, without liquidating my crypto holdings. Aside from offering the best price, their approach to secure storage and thoughtful loan to value ratios gave me confidence that they were the right partner to work with for my cryptocurrency needs.

ANDREW HANCOX
CEO, BLOCK8 VENTURES

As a long term crypto holder, it’s important to me to be able to leverage my existing capital without selling. Earning monthly interest all in one place has simplified how I use my cryptoassets.

ANGELA CERESNIE
CEO, CLIMB CREDIT

BlockFi makes it fun to be a hodler again.

DATOIMEE
REDDIT USER

We have felt strongly that this market needs access to debt beyond fragmented, short term margin trading options in order to reduce volatility, facilitate scale and put the financial infrastructure for this ecosystem on par with other asset classes. We're happy to have BlockFi as part of the Consensys family and see tremendous growth opportunities for their platform.

KAVITA GUPTA
MANAGING PARTNER, CONSENSYS

BlockFi was my first choice when looking to use crypto as collateral for a fiat loan. BlockFi's friendly and professional staff helped make for a very smooth process from start to finish.

STEVEN HATZAKIS
BLOCKFI CLIENT

It feels great to have my crypto be recognized as a real asset, which can used as collateral. I'm going to be able to immediately pay off a credit card I've been carrying a balance on.

CASEY R.
BLOCKFI CLIENT

Learn more about earning crypto interest and crypto-backed loans with BlockFi

Apply in less than two minutes.

Fastest Bitcoin and Ether backed loans in the industry.

Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are riot subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
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Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
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