A staggering 60% of Americans are carrying heavy debt that causes them massive amounts of stress, according to LendingTree. Getting rid of debt usually involves drawing up agreements with creditors and extreme penny-pinching. Thankfully, debt management is now crossing paths with newer technologies and new currencies. Cryptocurrency can now be the gateway that you need to better manage your debt. So how can it do this exactly?
Improved Cash Flow
To make ends meet, the American market is no stranger to the concept of payday loans. In fact, 75% of payday loans are taken out by those who have used them before. These types of loans are often necessary given the delayed nature of most bi-monthly paychecks. Cryptocurrency can help cut through the bureaucracy of salary processing by being introduced into the Automated Clearing House System that’s employed by companies and businesses, according to Steven Buchko. So instead of having to wait for checks to clear through several processes, cryptocurrency needs only a few blockchain confirmations before going through. Consumers can get instant access to much-needed funds, and will no longer see the need to take out payday loans.
Passive Income
There are more people that use cryptocurrency than you might think. Over 36.5 million Americans own cryptocurrency — or some form of it — according to Finder. Instead of just hoarding it, you can make it work for you. Companies like BlockFi and Celsius have come up with new ways for crypto owners to earn more by having it grow interest — just like a bank. After a lock-in period (if they have one), you can earn roughly 4-5% from your cryptocurrency without having to do anything. You can also lend out your cryptocurrency through peer-to-peer lending platforms like CoinLoan. If that isn’t to your taste, you can earn money by offering mining services to those that wish to obtain crypto assets. It simply requires you to use the normal channels that you used to mine your own cryptocurrency — so it really doesn’t cost you anything. So instead of simply relying on traditional methods to generate income, cryptocurrency can open up more avenues and keep you out of debt.
Viable Alternative In A Crisis
The legal tender should be stable in order to be worth something. But what history has shown is that this is not always the case — Greece being the most well-known example of legal tender nose-diving in value. When the national currency was practically worthless, consumers were affected and had to search for alternatives. What a lot of them found was cryptocurrency. Another example of cryptocurrency being a suitable alternative in a crisis was in Cyprus back in 2013. When their banking crisis was at its peak, the value of cryptocurrency skyrocketed and served as a shield for consumers. While crypto is rather volatile in its worth, it has remained consistently valuable, despite differing countries and political regimes passing through the times. What this means for you is that in the event of a market crash where the dollar is deemed worthless, having crypto assets makes sure that you still have something that is of value.
Cryptocurrency’s power is here to stay. The fact that it now has the capability to help consumers climb their way out of debt without the bureaucratic hoops put in by banks is just the cherry on top of the cake. So if you’re staring debt in the face, maybe it’s time to consider using cryptocurrency as a gateway to better handle your debts. Naturally, it’s good to take your time and look over the pros and cons. That way, you can be certain that you are at peace with your financial decisions.
