Survey: Americans Borrow Money, Default Bills to Buy Cryptocurrency
Over 32% of cryptocurrency investors have used a payday loan in the past, and 11% have used a payday loan or title loan to buy crypto
—Robert Geoghegan, A to Z author of Web3
AUSTIN, TEXAS, USA, June 23, 2022 /EINPresswire.com/ – Investing in cryptocurrencies has been a wild ride lately.
So what happens when market conditions combine the tantalizing prospect of new global currencies and exceptionally low prices, but there is no budget flexibility to invest? Americans are turning to lenders.
And as many investors are currently adding up their losses, others are doubling down, using loans to fund more cryptocurrency purchases as they try to time the market to predict when prices will bottom out.
Many of these borrowers are already in trouble. More than 32% of cryptocurrency investors have used a payday loan in the past, and 11% have used a payday loan or title loan to invest in cryptocurrency, despite three-tier interest rates figures.
July 3 is Shitcoin Day, the anniversary of the first-ever utility token ICO, called Mastercoin, in 2013. To mark this, DebtHammer.org surveyed over 1,500 Americans to study their investment habits. Here’s what we learned.
Key points to remember
Americans use loans to pay for their investments: About 21% of crypto investors said they have used a loan to pay for their cryptocurrency investments. Personal loans were the most popular, but payday loans, title loans, mortgage refinances, home equity loans and leftover student loan funds were also used.
Hoping for a payday: 11% of previous payday loan users who bought crypto used a payday loan or title loan to buy crypto. Most borrowed between $500 and $1,000 to invest. Given that payday loans average around 400% APR, this is a big gamble.
Investors are getting into debt: Nearly 19% of respondents said they had trouble paying at least one bill because of the amount of money they had invested in cryptocurrency, and about 15% said worry about an eviction, foreclosure or car. repossession due to their investment.
Read the full report at debthammer.org/cryptocurrency-survey.
DebtHammer is an industry leader in the fight to get Americans out of debt.
Please email [email protected] for more information or if you would like to schedule a phone or video call with DebtHammer Founder and CEO Jake Hill. Feel free to embed any of the visuals included in the report on your website, or use or modify the raw files as needed. Full datasets are available upon request.
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