Now that the holidays have passed, your credit card bills with your holiday spending may have started to trickle in. Most by now have heard of various debt paydown methods like the snowball and avalanche, both of which have their advantages in their own right.
However, according to a 2018 study by CreditCards.com, with an average debt of $8,195, the usual American household will take about 13 months to pay that off. Although, that amount of time it takes to pay those off can of course vary based on numerous factors, like the balances themselves, household income and other living situations.
The problem is though that most of those situations involve putting 15% of your income to that debt – something that just isn’t always realistic for everyone. Of course you might be able to find other ways to boost your income that meet that threshold.
You have probably heard that just paying the minimum amount, while probably more realistic, won’t exactly move the needle either. Simply just paying that could result in it taking months, if not decades to pay off a balance.
Which brings us full circle to if spending 15% on your balances are unrealistically high, and only paying the minimum is staggeringly low, where you do find the sweet middle?
Enter Tally - Help For Your Credit Card Balances
According to Tally’s blog, here’s how they can help:
We’ve already established a few things that will shape this answer: the balance on your credit cards, your income, your interest rates and your minimum payment. Add to that list: your payment due dates, your credit score and the ability to perfectly manage every payment for every card.
The point is that it can be hard to pay off your credit cards. Really hard. Unreasonably hard. And any misstep along the way extends the amount of time it takes to ditch your debt.
“Lenders make money through interest charges. The longer you’re in debt, the more you’re paying in interest,” Hardeman said. “But it doesn’t have to be this way.”
Tally works like a robo-advisor for your debt. You plug all of the relevant credit card information into the app. (It could be one credit card. It could be 10.) You control the debt you want Tally to manage.
You also control your debt repayment timeline. Just tell Tally when you want to be out of debt, and Tally gives you a payment recommendation every month to make it happen. If your monthly payment amount feels unmanageable, you can adjust your timeline to reduce the amount.
Remember: The more you pay, the faster you’ll be out of debt. And the faster you’re out of debt, the more you’ll save.
Tally crunches the numbers for you. This goes far beyond a traditional debt repayment calculator. Tally knows it’s unrealistic to stop using your credit cards entirely, so it takes your spending habits into consideration. If you spend more than expected one month, you’ll see how it affects your debt repayment timeline.
Tally also knows minimum payments won’t get the job done. Your payment recommendation is based on your prior month’s spending, plus 3% of your total balances, but Tally customers who regularly pay more than the minimum amount owed on their Tally balance have been proven to wipe out their debt at an exceptional rate.
In fact, Tally customers who pay five times the minimum amount owed, on average, are able to eliminate 20% of their debt in the first three months of using Tally.
Tally pays your credit cards for you. Those high-interest cards? If the APR on your credit cards is higher than your Tally line of credit, Tally pays them first to make sure you’re saving as much money as possible. Have a card with a 0% promotional interest rate? Tally pays the minimum while the offer lasts and allocates your money where it’s most effective.
Because Tally is the one to pay off your credit cards every month, it eliminates the possibility of a missed payment. Tally’s late fee protection gives you peace of mind and ensures you’ll never waste another dollar on late fees.
How Does Tally Work?
Here’s how Tally revolutionizes this entire problem:
Tally analyzes the factors that affect how long it will take to pay off your credit cards.
Tally formulates a strategy for you to pay off your credit cards in the fastest, most efficient way possible.
Tally uses your Tally line of credit to help pay down your cards.
If you’re interested in giving it a try, check out our referral link to get a $20 Amazon gift card for trying it out. We’ve used it for awhile now to help consolidate some things and have yet to have any issues.