US card debt hits $1.29 trillion as Bitcoin loans expose a collateral divide
Summary
US credit-card balances reached $1.29 trillion in the third quarter, while the Federal Reserve reported a 22.36% rate on interest-bearing card accounts. Coinbase advertises variable-rate Bitcoin-backed loans starting at 5.1%; a simplified $10,000 example estimates first-year costs of about $720 after its processing fee, versus $2,236 at the card rate. The comparison is illustrative, not a guaranteed saving: rates can change and other costs apply. Borrowers must pledge substantial Bitcoin, which is locked as collateral and may be automatically sold if its value falls below the loan’s liquidation threshold. The lower rate therefore trades borrowing cost for the risk of losing Bitcoin.
