Many of us have stared at their credit card statement or scrolled through their student loan balance at least once and thought “Will I ever get out of this hole?”. So no, you’re not alone in this situation. Debt will make anyone feel like a cloud is hanging over their head, even if you make minimum payments and try to stick to a plan. I remember the first time I calculated how much time I need to pay off my own loan if I stick to the plan to make monthly payments and the number of years almost made me laugh, but more it made me cry.
That was the moment I realized it’s necessary to look for alternatives. And unsurprisingly crypto popped up on my mind, considering that crypto is mentioned everywhere these days. It’s no longer described as a futuristic investment, but something that could actually help me cover my debt faster and gain peace of mind. And it’s not just big names like Bitcoin and Ethereum that captured my attention, but smaller ones like Bonk, especially due to their lower price.
When I first noticed Bonk price, I started thinking that I could afford to develop a crypto portfolio that could help me gain some extra money. Sure, not every coin skyrockets, but seeing how something like Bonk could grow in a short period of time made me realize that if you treat crypto gains wisely, you can turn them into extra payments that chip away at debt quicker than you’d expect.
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Why do we all feel that traditional repayment is a never-ending marathon?
Most of us know by now how the repayment game works: you make a monthly payment, the interest swallows half of it, and the balance barely budges. When you pay only the required amount you feel like you’re running on a treadmill, you see no progress, but you pay a lot of effort. Take credit cards, for example. A $5,000 balance at 20% interest could easily stretch over a decade if you’re just paying the minimums. That’s enough to make anyone want to find a shortcut. And while crypto isn’t a “get rich quick” ticket, it does offer something traditional savings accounts and slow investments don’t: the potential for quicker growth.
Is crypto really a solution to consider?
Let’s share a personal story, when I first dipped my toes into crypto, I did what all the other beginners do, I didn’t put much effort into it. Just a small portion of what I would normally spend on other things. But I decided that if this grows, I will use all the money I gain as a profit to cover my loans. And guess what, when the coins in my portfolio had a good run, the little experiment helped me shave a couple of months off my repayment schedule. Now, I won’t tell you that it was life-changing money, but it helped me make progress, and honestly even small progress feels amazing when you’re battling debt. That’s the appeal. Crypto can move faster than most traditional assets. Sure, there are risks (and we’ll talk about those), but even modest wins can make a difference if you stick to the rule of channeling gains directly into debt.
Staking, lending and passive income streams
What usually surprises beginner investors isn’t the buy low, sell high approach, but the fact that you can use crypto to generate passive income. For example, staking tokens, basically locking them up in a blockchain network could reward you with small but steady payouts. It will feel like free money, even though you will know that it is more like a dividend for participating in the network. The trick is to treat the payouts as bonus payments toward your loan. It’s like when you find loose change in the couch cushion, but this change is more substantial and you can cover a part of your monthly payments with it. And there are platforms that let you lend your crypto out in exchange for interest. It’s not for everyone, but can be a way of making your assets do the heavy lifting in the background.
Using crypto for big repayments
Here it could get interesting. We all heard of people who sold a chunk of a well-known crypto like Bitcoin or Ethereum during the peak and used it to erase their debt and even invest in some new business. It’s a long shot but if you use the right strategies you can be the next investor who can joke that Bonk bought your car or house. The truth is that investing in cryptocurrencies and using the profit to cover your debt could bring you peace of mind. When you cut out the loan early you free up a large sum of money each month so you can use the extra cash to cover other expenses. That’s another way crypto can help: instead of nickel-and-diming debt with tiny payments, you can take advantage of good market timing to eliminate whole balances. Of course, it’s a gamble, no one can predict the market perfectly, but it shows how powerful crypto can be when paired with a smart repayment strategy.
But let’s be honest about the risks
Before I make it sound like crypto is the perfect solution, here’s the reality check: it’s volatile. Prices can tank just as quickly as they rise, and if you invest money you can’t afford to lose, you might end up worse off. That’s why I never skipped minimum payments or relied solely on crypto to clear debt. Think of it more like an accelerator pedal, helpful if used wisely, dangerous if slammed recklessly. I also set rules for myself, like never touching the money I needed for bills and only investing extra cash. That way, even if the market dipped, I wasn’t sabotaging my day-to-day life.
The bottom line
Crypto isn’t a miracle cure for debt, but it can be a surprisingly helpful tool if you use it with discipline. So if you’ve ever wished you could break free from debt earlier, consider experimenting with crypto carefully, responsibly, and with clear rules. Who knows? That next little surge in the market might not just brighten your portfolio; it might bring you one step closer to being debt-free.