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Member Spotlight: Andrea is Forging a Path Out of Overwhelming Debt

“The help Tally has given me to balance my credit card debt and be able to slowly pay down the debt has been amazing.”

January 20, 2022

When the unexpected happened, Andrea did what most Americans say they’d do — she turned to credit cards to help cover expenses. 

Andrea, a new mother, was living with her sister when her sibling lost her job. “I had just had my daughter, so I was only working part-time,” Andrea says. “So I used my credit cards to pay for everything: rent, bills, groceries, and more. I did this for the last three years before we moved back home.”

Before she even realized it, Andrea had nearly maxed out all three of her credit cards. 

“Once the minimum payments were over $200 for each card, that’s when I realized I needed help,” says Andrea.

The avalanche of compounding interest

Like an avalanche, credit card debt can seemingly appear out of nowhere, ballooning into an unwieldy sum. You may use a card to cover an unexpected expense or two, but if you’re not paying extra-close attention, the balance of cards can grow almost overnight. 

That’s in part due to the power of compounding interest. Unlike simple interest, where you’re only charged based on the principal amount of a loan, compound interest has the potential to grow much faster. 

In the case of compounding interest, your interest will grow on top of interest. Each time interest is calculated, it’s based on the new total, not the principal. 


This might not sound like much, but it snowballs over time. For example, if you carried a $100 balance on a credit card with a 5% compounding interest rate, your balance will be $105 at the end of the statement period. The credit card company will then charge you interest based on the new $105 total in the next statement period, and not the original $100.  

When credit card interest compounds, it can feel overwhelming. Debt continues to grow, even if you stop spending. 

By the time Andrea took a look at her credit card balances, she felt overwhelmed with the growing totals. That’s when Andrea found Tally†

Making a plan with Tally

Andrea felt crushed by her credit card debt before discovering Tally. But now, she's been to get a handle on her balances to the point where she can see the light at the end of the tunnel. 

“The help Tally has given me to balance my credit card debt and be able to slowly pay down the debt has been amazing,” Andrea says. “I currently have Tally paying the minimum on two of the three cards that are due around the same time, and that has helped with managing my budget and making sure I have enough for those payments each month.”

Tally compiles your credit card debt in one convenient place, making it easier to get a big-picture view of your debt. It also organizes your due dates, helping you avoid missing payments. 

A guide on the path to financial freedom

Andrea is still working to pay down her credit card debt, but Tally has given her the path to financial freedom. “I’m still feeling like I need more help, but debt is definitely not crushing me as much as it used to,” she explains. 

With a weight off her shoulders, Andrea is beginning to focus on future financial goals. “[I want to] continue to provide for my daughter and to someday own a house and car.”

As she moves forward, Andera has advice for other readers, “Stick to one credit card, for emergencies only, and constantly pay it off.”

​​†To get the benefits of a Tally line of credit, you must qualify for and accept a Tally line of credit. The APR (which is the same as your interest rate) will be between 7.90% and 29.99% per year and will be based on your credit history. The APR will vary with the market based on the Prime Rate. Annual fees range from $0 - $300.