It’s not easy to get out of credit card debt, but a startup called Tally wants to help consumers do just that, as its first step in automating their personal finances. That company is launching with a mobile app today that is designed to help consumers avoid late fees, lower credit card balances and maximize their savings.
Over the last few years, I’ve been looking for products and services in the fintech space that are designed to automate the process of saving money and paying down debt. And while there are a number of companies that provide dashboards, insights and analytics that help you understand your personal finances, very few actually do anything.
Basically, I’ve been trying to find a robo-advisor for your personal finances — something that will take a look at your income, checking and savings balances, credit cards, student loans and mortgage accounts, and make the best financial decisions for you based on all that data.
That’s what Tally wants to do, starting with credit cards. For credit card users who carry a balance, it can be difficult to figure out how much they can afford to pay to lower their debt from month to month. That calculus becomes even more complicated when people have multiple cards to contend with.
By adding all their active cards to the Tally app and connecting a checking account to the app, the company will create a plan to help consumers avoid late fees, maximize their savings and reduce the amount they pay in interest fees.
Tally takes into account multiple aspects of a user’s credit card usage, including their credit score, balances, promotional rates and spending behavior in plotting the best course of action. Unlike other personal finance apps and services, which use that data to suggest a new card that users can transfer their balance to, Tally is focused first and foremost on helping users to eliminate whatever credit card debt they may have.
In some cases,…