Is paying a debt with bitcoins a good idea or a bad idea? You’ll find plenty of opinions out there, from those who like it and those who don’t. The truth is that it really depends. It all depends on what you’re trying to accomplish with the payment.
If you’re paying for some old credit card debt that just won’t go away no matter how much you whine, is it a bad idea to pay with bitcoins? It’s a bad idea if you’re relying on credit cards to pay for basic essentials like food and shelter. While using cash may seem like a logical solution in these cases, the problem of scarcity drives people to seek out alternative sources of money. For most people, however, this is not an option. Their only other option is to file for bankruptcy.
You shouldn’t feel bad if you’re considering this as an option for your debt.
The truth is, it’s a very good one. A lot of people who owe debts are in deep debt and might never get out. The question is whether you can handle your debt without using the services of a debt settlement company. This is where the good bit comes in.
While many people use the services of such companies to negotiate lower payments and interest rates, they often do so by using unfair practices. These companies get their commission from the lenders and they use this money to pay their staff members. This is considered a form of mis-selling, because it’s really the selling of services rather than the services themselves. A bad idea. In fact, it’s pretty illegal to do this.
However, the same financial problems that make you want to avoid companies that charge outrageous fees can also make it difficult to pay a debt with bitcoins. After all, there are no fees involved. The truth is, when you pay a settlement agency, you’re essentially paying them to represent you. There’s no guarantee that they’ll actually be able to help you or that they’ll be successful at negotiating a lower payment.
In addition, there are plenty of other reasons why you should steer clear of these companies.
One good reason is simply because they’re not private. Many people use them because they don’t want anyone to know that they’re paying down debts with a virtual machine. However, if the agency gets out of business, those creditors will still have access to your money. This is bad news if you’re in need of emergency funds and need to pay a long-term bill quickly.
A bad idea also goes along the lines of being a scam. While it’s true that some companies may ask for a large sum of money up front before they’ll negotiate a settlement for you, it’s also true that many others won’t charge you anything until you actually pay off the debt. For example, some companies will only charge you a small monthly fee in order to give you access to their services. Although this isn’t bad in itself, you should steer clear of companies like this if you want to avoid a bad outcome.
Whether or not you should use a company that pays a debt with bitcoins is a personal decision.
It’s up to you whether you’re happy to work with a non-profit group that may not offer you good service. Also, it’s important to note that not every service is available globally. While it’s possible to find some, like one based in Spain, there are more reputable options available such as the ones mentioned here.