My Credit Consolidation Loan


#1

I guess I will be the first the break in this part of the forum.
I have just listed a loan for 5btc tied to usd, I am looking to consolidate a couple of small credit cards. I do not need the full 5btc but it saves me money on the origination fees versus the smaller amount I need.

Considering I don’t need the full loan, I will be making the first payment upon activation as a thank you to everyone who invested in this and past loans.


#2

Thank you to whomever invested 0.01btc


#3

Why did you tie it to USD? :frowning:


#4

You shouldn’t have done this.


#5

Because I am using it to pay off credit cards that are denominated in usd. I do expect it to keep falling, but if it doesn’t, I don’t want to be paying back more than I borrowed by too wide of a margin.

Look at it this way, if btc keeps falling, those that invest will get even more btc back with each loan payment.


#6

It’s your choice of course, but along the same line that if the price of BTC increases, you’ll be paying back more.


#7

No, thats not how tied loans work. If I borrow 100$+interest and btc climbs, I still only pay back 100+interest, if it was in btc and it climbed I would have to purchase a higher dollar amount of btc to make the payments.


#8

Correct. But since most people take and give loans in BTC they do want that amount of BTC back in return plus interest.


#9

This is a difficult decision to make. If I denominate a loan in btc and it starts into a bull market, I am screwing myself over the life of the loan.


#10

I think I have decided to take the risk and relist the loan. I am taking a decent sized risk, but I do believe we have some more downside on the price before it starts to rebound.