SAN FRANCISCO--(BUSINESS WIRE)--Tally, the app that helps pay and organize your credit cards, today released the results of its Transfer Trap study that takes a closer look at the most frequently cited solutions for consumers trying to manage credit card debt: balance-transfer credit cards and credit card debt consolidation loans, both known as credit card debt refinancing. The study found that an overwhelming majority of consumers who tried these solutions found themselves financially and emotionally in a similar or worse-off position than they were three years ago.
Tally surveyed over 1,700 people in the U.S. who have had credit card debt at some point in the last three years. The findings go on to demonstrate that these solutions do not work, because they don’t take any steps to change behavior or awareness. Key findings from the study include:
- 70% of individuals who refinanced their credit card debt are in the same or worse position as they were three years ago.
- The average credit card debt among these individuals increased from $5,606 to $8,117 over the past three years.
- Only 38% of individuals who balance transferred say they are able to pay off the entire amount before the promotional rate expires.
- 81% of survey respondents said they felt that debt refinancing actually makes it easier to accumulate more credit card debt.
- 71% of survey respondents said debt refinancing made them more stressed.
“There is more than $1 trillion of consumer credit card debt in the U.S., and the Consumer Financial Protection Bureau calls credit cards the largest and most complex market of any financial product. It’s no surprise that consumers find managing their credit cards as stressful as awaiting major medical test results or surgery,” said Jason Brown, co-founder and CEO of Tally. “There is a wealth of content and education available from government agencies and fintech companies, however our Beta and research have demonstrated how well consumers respond to the automation that Tally is introducing for the first time.”
Tally’s goal is to automate consumers’ financial lives, beginning with credit cards. Tally handles every permutation of users’ credit profiles, balances, cards, promotional rates and behavior, with advanced algorithms that help consumers make the best possible financial decision, ultimately maximizing their savings and protecting them from credit card interest costs and fees.
To learn more about Tally, visit www.meettally.com.
About Tally
Tally is a smarter way to manage your credit cards and a faster way to pay your balance, replacing credit card-induced stress with confidence. Balance or no balance, the credit card industry is notoriously confusing. Tally’s app applies an advanced algorithm to make the right payment, to the right card, at the right time, helping you make the most financially optimal decision and pay down your balances as efficiently as possible. Credit cards should be empowering—a passport, not a burden. Tally wants to help automate your financial life, starting with managing your credit cards.