If you are in any type of debt, you will probably jump at the chance to discover new ways to reduce or even pay off your debt in a timely manner. It’s important to recognize these opportunities—and even more to determine if they are legit. Read on for ways you can pay off your debt faster through services like Tally.
What is Tally?
Tally is an app that is designed to help you pay off your credit card debt. After you download the app and provide it with the necessary information, Tally gives you an analysis of your debt and a plan to help you pay it off, specifically through discovering how to maximize payments in such a way that it addresses those debts with greater interest rates first.
This app also takes financial customer service one step further: in order to utilize all the features of the app, you can apply for a line of credit with the Tally. This may seem counter-intuitive, but Tally charges a lower rate of interest than many of the credit card companies you are paying each month. If you decide to open a line of credit with Tally, they will redistribute your monthly payments to your creditors in a manner that minimizes your interest costs as much as possible.
Do I want to do this?
Sure! Okay, you should really do more research first. Tally is specifically marketed to those who want to reduce their credit card debt, especially if you are also paying on a high interest rate. Tally’s website emphasizes that they seek to level the playing field for those in debt by allowing them the opportunity to make smaller payments while still maintaining their credit.
If you are in debt but it runs more along the lines of student loans, medical expenses, etc., that are not on your credit card, this app may not make a difference for you. The website does offer some other financial resources at no additional cost, like a debt calculator, so it may still be worth your time to scroll through the options.
But really—do I want to do this?
Before you decide if Tally is the right fit for you, consider some of the pros and cons this service offers:
Pro: The app is easy to use, even for the most inexperienced money manager. Tally is set up to walk you through the steps you need to begin reducing your debt, and maintains a high user rating on its website and in app stores. This means less stress for you, and, even better, more savings.
Con: While the app itself is very user-friendly, you may have a hard time qualifying for their line of credit, which is how you reap most of the benefits it offers. In order to qualify, you need a FICO score of at least 660. Being a resident of certain states also disqualifies you, though the app is working to be available to every state.
Pro: Using Tally means paying just one bill each month instead of managing multiple payments and bills. This is not only less stressful for you, but also saves you some time each month. Plus, you can rest assured that you have not skipped any bills by mistake, since Tally is the one paying your credit card company each month.
Con: Not all credit cards participate with the app. Tally is working to secure more partnerships, but at least one major credit card, USAA, is not compatible with the app, so you would need to continue to make that payment separately.
Pro: Tally is ideal for those who are looking to build good credit habits, like paying down debt each month and keeping track of expenses you charge on a card. Using Tally can help you practice smart debt management and that experience and knowledge will continue to serve you no matter how long you decide to use the app.
Con: In spite of the app’s lower interest rate, it is still one more financial strain to consider. And while Tally encourages the habit of paying off current debt, they do not address the idea of holding off from going into more debt in the future. So when you use this app, keep in mind that you are still paying them for a service, and that the most important thing is to get out of debt in an efficient and responsible manner.
So what’s the bottom line? If you have credit card debt and you want help managing it, see if Tally works for you! Be sure your credit score is high enough, and check the website to learn if your state currently participates with the app (about 30 states currently do). At the end of the day, no app can replace your ability to be smart with your finances, so take it one step at a time.
