US credit-card balances reached $1.29 trillion in the third quarter, $22 billion more than in the previous quarter and $52 billion higher than a year earlier. The Federal Reserve measured a 22.36% interest rate on commercial credit cards, while Coinbase advertises crypto-backed borrowing starting at 5.1%, before fees and rate changes. In a one-year illustration, a $10,000 loan with fees would cost $720.20 in total, compared with $2,236 in simple interest on a credit card. However, a $10,000 loan opened at a 40% loan-to-value ratio requires $25,500 in Bitcoin, including fees, and the collateral may be sold automatically if its value collapses. The New York Fed also reported a slight improvement in transitions into serious delinquency, with the annualized rate falling from 7.1% to 6.9% over one year.
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