Paying off a high amount of credit card debt seems overwhelming. You have to deal with making payments on time, meeting minimum payments, and more. Becoming debt free is certainly possible, but can be difficult. Finding the right tools to manage debt repayment is essential to reaching that freedom. Tally is an app that helps you manage debt repayment and save money.
If you want to kill debt for good in 2021, you may wonder how to manage the details to reach your goal. This Tally review shows how the service can simplify paying off credit cards and make 2021 the year you finally become debt free.
What is Tally?
If you haven’t heard of Tally, you may wonder what it is and how it works. Tally is a credit card management app and service that is available for both Apple and Android phones. Its aim is to help you pay off your credit cards faster.
Tally does this in a number of ways, such as:
- Ensures timely payments
- Providing a lower interest rate through the Tally line of credit
- Avoid fees so more of your payment goes toward the indebtedness
Their main mission is to make you less stressed and help you be better off financially. The app basically takes over management of your debt repayment to ensure proper payment.
Currently, you must have a minimum FICO score of at least 660 to qualify to use Tally. The service uses a soft credit check so it does not impact your credit. Tally also does not charge origination fees for their line of credit.
How Does it Work?
When you download the Tally app you enter all of your credit card information. Then you apply for the line of credit.
Don’t worry; this isn’t to get you into more debt. Instead, it’s to consolidate all of your credit cards. Once you’re approved, they offer you your line of credit.
The Tally line of credit is what’s used to repay your credit cards – they do not approve you for additional credit. Think of it as similar to taking a personal loan to repay debt.
The key difference is Tally automates it all for you and makes payments on your behalf.
The interest rate you receive depends largely on your FICO score and credit history. Current rates vary between 7.99 and 19.99 percent. If you don’t qualify for a balance transfer card, or simply don’t want another credit card, Tally can be a viable way to lower your interest rates and pay off debt.
Tally does this by using the line of credit funds to send direct payment to the highest rate cards. This helps save money by reducing the amount of interest you pay.
Signing up for Tally and working with them really is simple. No more extra fees, no worrying about due dates, and the ability to pay off debt faster are all huge perks.
How Does Tally Make Money?
Tally makes their money by charging interest on the amount that you borrow as a line of credit. There are no hidden fees, no annual fee, no late fees, or anything like that. Whereas some unsecured loans to consolidate debt companies charge origination fees, Tally does not.
The only charge you have from Tally is the rate they charge on the line of credit.
Tally Pay vs. You Pay
The Tally app allows you to pay your cards in two ways. The first option involves Tally sending payments to the cards you have on file at least two business days before their due dates. This is to ensure that your cards are paid on time.
The second option is via You Pay. This method keeps you in control of the payments you make to your cards. They will still remind you when to pay the cards, and they do that a few days before the due date.
*Related: What is “good” credit? Get answers and learn how to improve your credit in our credit score ranges guide.*
You can then pay through the Tally app and send the money directly to your card. If you don’t want to use the Tally app, you can pay as you normally would. Keep in mind that to fully take advantage of the service, it’s best to let them management payments.
Whichever option you choose, you can always switch. If you become more comfortable with making your own payments, feel free to switch to You Pay. If you want to be a little more hands off, let Tally take care of you!
You can’t go wrong with either option. It all comes down to personal preference.
Late Fee Protection
When you first sign up for Tally, all of the credit cards you list are automatically enrolled in Tally’s late fee protection plan. So whether you use Tally Pay or You Pay, Tally will scan your cards to see if you’ve made at least the minimum payment.
If Tally doesn’t detect a payment from you, they will make the minimum payment on your behalf using your Tally credit line. This is to ensure that you aren’t charged any late fees.
You can disable Tally’s late fee protection to avoid double payments in case they don’t notice your payment right away or if you just don’t need the extra reminder.
What’s great about the late fee protection is that you won’t miss payments or be charged extra like you would if you paid your credit cards yourself. This tool is the most useful for those that tend to forget due dates, or for those struggling to break the paycheck-to-paycheck cycle.
Tally takes that fear and forgetfulness away. And that also means less that you have to worry about.
What is Tally Advisor?
Now that you know how it all works, let’s talk about Tally Advisor. Tally Advisor is like a robo-advisor but instead of using it for investing, you’re using it to pay off debt faster.
The Tally Advisor will monitor your balances, interest rates, and payment due dates. Once it’s done that, it provides you with a personalized payment recommendation.
How does this work so well for you? One, because the personalized payment recommendation is a monthly occurrence, they are able to make the recommendation based on your spending habits and the timeline you choose.
For example, if you want to be credit card debt free in three years, Tally Advisor can calculate that for you. But if you decide to pay off the debt in two years instead, it will readjust and offer you a new payment plan to help you achieve that goal.
Another great perk to Tally Advisor is that you can always contribute more money when you can, with no penalty. This can come in handy should you get a bonus from work, a large tax refund, or even just some extra cash in your monthly budget.
All of this also comes with Tally encouragement. They want you to pay off your debt faster, so the more you participate, the more they encourage and celebrate what you’ve accomplished.
Where is the App Available?
Unfortunately, Tally isn’t available everywhere. As of this writing, the app and service is only available in the following states: Arkansas, California, Colorado, Connecticut, Washington DC, Florida, Illinois, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio, Oregon, Pennsylvania, Texas, Utah, Washington, and Wisconsin.
If you aren’t in the states currently available, no worries. The website says that they’re adding states on a regular basis. If you want to check in and see when your state will be available, the quickest way to find out is to sign up for their email list.
That way, you can be alerted as soon as they’re available in your area.
Could Tally work for you?
While Tally is a great company and app looking to help people pay off their credit card debt faster, it won’t work for everyone. If you’re trying to pay off high-interest credit cards, have multiple credit cards with balances, or find it increasingly harder to pay your cards on time, this could be the best app for you.
*Related: Waiting on your tax refund? Read our guide on where’s my IRS tax refund to learn how long it takes to receive your funds.*
If you are paying off your cards without help, don’t have high interest rates, or can get a balance transfer credit card, using Tally might not be the best option for you. However, as with anything finance related, it’s important to do the math to see if it’s a good option for your needs.
Tally is the app that’s been made for people struggling to pay off high-interest credit card balances. When you aren’t seeing the needle budge, it can be discouraging. Tally provides the assistance and encouragement to get your debt repayment moving.
Overall, Tally is a wonderful, simple app that anyone paying off their cards should have in their arsenal. But most importantly, it’s an app dedicated to helping the average person. With no hidden fees, an easy-to-use service, and great customer service, you’ll be credit card debt free in no time.
What tools have you found helpful in paying off debt? How do you feel about letting an app make debt payments for you? How many credit cards do you have? What is one financial goal you want to reach this year?