America’s credit card debt crisis amounts to $890 billion, according to the most current data from the Federal Reserve Bank of New York, and the average credit card debt for an American household is about $6,473. That’s a lot of money to pay off and with interest rates hovering around 16 percent, many Americans find themselves unable to manage their debt.
One company trying to help pay down consumers’ credit card debt is Tally, a debt payoff platform that Monday announced it raised $80 million in Series D funding.
Tally automates credit card debt payments by analyzing users’ financial data to find the best and fastest way to pay down their debt. Afterward, Tally gives eligible users a new line of credit with a lower interest rate to help them pay off debt even faster.
“Credit cards are designed to trap people in a cycle of debt. Our debt-free system helps consumers pay off credit cards faster, empowering them to take control of their finances and make real progress towards their financial goals,” Tally CEO and co-founder Jason Brown said in a statement.
The company’s approach to debt payoff seems to be working so far. To date, Tally has paid over $1 billion in credit card debt. Last year, it saved its members $1.2 million in late fees and enabled average users to get out of debt up to three years faster, according to the company.
The new funding led by Sway Ventures will enable Tally to grow its business and further expand its automated debt pay-down system. As part of the funding, Sway general partner Ken Denman will also join Tally’s board of directors.
“Tally is a true industry innovator for its distinctive use of technology to help more consumers get out of debt, and we look forward to partnering with the Tally team to help expand their product offerings and reach, particularly during a time when credit card balances are nearing all-time highs,” Denman said in a statement.
