Cryptocurrency is the best performing asset class of 2017. Over the past year, the returns in this asset class have been outstanding. However, there are many people who are trying to jump in before everything drops. Many experts are afraid of a bubble in this asset class. One of the best signs of a bubble is people taking on debt in order to invest.
Over the past few weeks, some people have started using credit cards to invest in this asset class. This is not a good sign for people who are trying to pay down credit card debt. Although some investors may make money, there are many people who are going to lose money and end up with debt.
Credit Card Stats
In the United States today, the total amount of credit card debt is staggering. With all of the new credit cards being opened each month, some personal finance experts fear that this trend is going to continue.
The average person in the United States owes thousands of dollars in credit card debt. However, there are some people who owe much more. This is a bad sign for the future of the economy. Although consumer spending is a good thing, it is not a positive sign when the spending is fueled by credit cards.
To make matters worse, some credit cards are offering various bonuses if consumers spend a certain amount of money. This is going to lead many people to spend more money than they originally planned.
Getting Out of Debt
Getting out of credit card debt is a great way to improve your current financial position. Instead of investing in something like cryptocurrency, you should start looking for other options with your money. Paying down just a single credit card can make a huge difference each month. The interest rate on a credit card makes it difficult to get out of debt.