Member Spotlight: Learn How Carlos Broke the Endless Cycle of Costly Balance Transfers

When Carlos C. found himself in credit card debt, he did what nearly half of Americans carrying debt often do: apply for a balance transfer. A balance transfer allows you to move outstanding credit card debt from one credit card to another. With a balance transfer offer from a new credit card, typically you’ll pay little to zero interest for a promotional period, anywhere from 12 to 21 months. If you can pay off outstanding debt in the promotional window, you can save on interest, and perhaps consolidate multiple debts. 

The catch is, once that promotional period is up, interest charges kick in once again, meaning if you don't stick to a strict debt repayment schedule, you may end up owing more than you did before. 

The trouble with transfers

Like 32% of people who use a balance transfer offer, Carlos didn’t pay off his remaining credit card debt in time. “I did a few balance transfers and wasn’t able to pay them off on time. This cost me tens of thousands of dollars in interest,” he explains. 

While a balance transfer offer may seem enticing at first, it can often lead to additional debt for some. More than half of Americans who use a balance transfer promotion say they continued to make purchases on their credit card before it was paid off. The low-interest promotion is good while it lasts, but many people struggle to pay it off in time, digging themselves deeper into credit card debt. 

Tackling debt with Tally

Carlos thought he was stuck in a cycle of balance transfers until he found Tally.† “Tally had better results in one month than I did the previous five years,” Carlos says. Tally helped him establish a debt repayment plan with on-time and minimum payments.

Balance transfers can feel like a temporary solution to credit card debt, but Tally helps tackle the issue head-on. Instead of paying between 3% to 5% for a balance transfer fee and having to juggle a stack of paperwork every month, Tally can consolidate your credit card debt in one place, and help you keep it organized. It also helps you tackle debt smarter with the app’s customized pay-off strategies, which help take on the heavy lifting of the debt repayment strategy. 

“I really don’t know how Tally could be more helpful,” Carlos says. Unlike other potential debt repayment solutions, “it was fast and convenient to use... and a lifesaver.”

While Carlos had tried to banish debt with balance transfers, it was Tally’s payoff strategies that stuck with him. The smart repayment features made him feel “like a weight has been lifted off my shoulders,” he says. “I no longer stress over debt.”

Carlos knows Tally has his back with additional features, like the revolving lower-interest line of credit and late fee-free payments. With the debt stress off his shoulders, Carlos can spend more time doing the things he loves, like cooking and traveling. 

Putting an end to interest charges

Moving forward, Carlos is keeping an eye on his card balances and avoiding excessive debt. His advice? “Only charge what you can pay off at the end of the month.”

While Carlos is completing his journey with debt, many still struggle with the cycle of balance transfers and unclear repayment strategies. If credit card debt is weighing you down, take a look at how Tally may be able to help.†  

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​​†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.