Americans seems to be approaching $1 trillion of credit debt and report from the Wall Street Journal said “That amount would come near to the all-time maximum of $1.02 trillion that was set in July 2008, right before the economic crisis and may sign an ease of economical habits ingrained from the downturn”. On a more personal level, It is known that with debt of $15,762 in credit card debt, NerdWallet found the typical US home.

Entrepreneurs Jason Brown, who had been formerly an associate at venture capital company Voyager Capital, and Jasper Platz, who formerly worked like a senior associate at PricewaterhouseCoopers LLP, joined up with credit specialists and engineers to provide their particular means to fix this $1 trillion issue: Tally, a brand new application that seeks to handle your credit cards for you and help payoff high-interest credit card debt by giving a new credit line having a lower annual percentage rate(APR).

The amount of interest in which a charge card fees on outstanding bills is 15%, this is also a typical APR (annual percentage rate). This could wind up costing huge amount of dollars within the long term every month should you just spend the minimum in your balance. Actually, NerdWallet discovered that the typical US customer with credit card debt gives $2,630 in interest a year.

Here are some things the San Francisco based startup is going to do for you: If you get accepted to get a “Tally credit line” a waitlist is currently on the site and to qualify, you should have a credit rating of at least 660. Tally can pay off your high-interest cards after which cost you a diminished rate of interest on a single balance. Tally will analyze your credit history before your new rate is determined. The scenario is like obtaining an unsecured loan, making use of the application platform.

A free to download application and can also be used as a tool for making money just like a common a credit card company. This is done by the effect of interest on every amount borrowed. That amount is guaranteed to become significantly less than you’d have paid for your credit card. “We just make money and we also save you money.” Brown said.

Even though you would not enjoy the APR to its full benefit and spend your balance entirely, Tally acts as being a convenience device: It seeks to get rid of the trouble by instantly paying your bills of managing multiple credit cards.

This feature reduces the risk of late fees, which is really a key-source of income for credit card issuers. The Customer Financial Protection Bureau believed that American users between the year 2011 and 2014 paid over $7 billion in late fees.

Brown explains that there is just one customer who might not get the best use of the application, and such person is one somebody who uses one credit card, makes his or her payment every month, and he/she is never on a late fee.

Obviously, there is still the obstacle of really getting accepted to get a Tally credit line, plus some experts fear that “the folks that require support are people who probably would not quality for that support at first.”

Brown says this can be a common belief when people think that those who instills stability do have poor credit, when actually isn’t true and just the opposite. The stat of 81% of all balances are carried by people with prime (FICO scores between 660 and 719) and super prime (FICO scores greater than 720), was founded by CFPB (Consumer Financial Protection Bureau). According to Brown “They continue to be given an unfair priced APRs despite their great credit”.

In conclusion, if your present APR interest rate is as high as costing you thousands of dollars or when you have difficulty building a couple of credit cards, Tally might be a solution worth considering.

If you should be on the waitlist or just not in love with the concept, you’ve some options. Try automating your credit card payments and renegotiating the rate of interest on your debt yourself.