- Average credit card debt in American households is above $5,000
- Average credit card interest is a staggering 20 percent
- Repaying your credit card debt at a slow rate could stretch your repayment tenure by years and cost you much more than you borrowed
A shaky employment rate, a high number of student loans, and rising rents could prevent many people from saving money for investments or a rainy day fund, especially during their early phases of life. In fact, theBalance has revealed that nearly half of Americans are only left with $250 a month after their monthly bills and expenses.
While credit cards may help you get credit when you need it, every payment that you make could end up costing you much more due to the exorbitantly high interest rates that come with one. On average, the credit card debt in every US household actually stands at more than $5,000 where the outstanding balance has been increasing by billions of dollars in the last few quarters.
If you only make the minimum required payments every month with a high interest rate, that debt could stretch out for years, causing you to lose much more money than you originally borrowed.
How to Avoid Losing Too Much Money on Credit Card Debt
Tally is an AI-powered app that could help you save money on high interest payments and protect you from late payment fees and negative credit impact.
- Tally’s AI analyzes your credit cards to create a personalized debt repayment plan by showing how you can prioritize high interest rate cards with larger outstanding balances to go debt-free faster.
- If your credit score is above 660, Tally also offers the opportunity to convert all of your credit cards into a low-interest line of credit starting at 7.9 percent.
- Tally will pay your creditor on your behalf every month, while you pay Tally one bill and save money on high interest payments.
- With Tally’s Fees Protection program, you never have to worry about late payment fees and associated credit impact as Tally will automatically pay if you miss a deadline. You can simply pay Tally at a later date.
When you are finally debt-free, you can still keep Tally’s low-interest line of credit in case you need it so you will no longer be subjected to late fees.