Kansas Debt Relief

In a Nutshell

Kansas residents frequently struggle the most with outstanding debts from medical bills, credit cards, mortgages, loans, or even devastating life events such as divorce. Thankfully, individuals in Kansas have several debt relief options available to them, including debt consolidation, debt settlement, and bankruptcy. This is crucial in managing the average consumer debt in Kansas of $78,069 to achieve a debt-free life. Each option has advantages and disadvantages, and before selecting a debt relief option, residents should carefully consider their financial situation and goals.

Read on to find out more about which Kansas debt relief program might be right for you, as well as key debt statistics and financial hardship resources available in the state.

Kansas: Economic Picture

Kansas residents have an average FICO score of 721, which is a good credit score for accessing low-interest loans for mortgages, especially since the housing market in Kansas is affordable. This revelation has attracted an influx of inbound migration to the state, especially the elderly, since the state exempts taxation on pension funds and the cost of living is 14% below the country’s average.

The recent migration trend has led to an increase in home values due to high demand. As a result, unemployment rates fell to 2.9% as the number of houses under construction increased to meet demand.

How does debt relief work in Kansas?

The main way debt relief works is through the process of getting help from a certified debt relief company to manage and work towards clearing your personal loan debt, credit card balance, or other unsecured debt. One of the most popular options for relief involves negotiating for lowered interest rates, lowered monthly payments, waiver of penalty fees, or partial debt forgiveness. This is crucial in achieving a debt-free life in the shortest amount of time possible.

Debt and finance statistics specific to the state of Kansas

The following debt and finance statistics are specific to the state of Kansas:

Average consumer debt

Average consumer debt is calculated by adding the total amount of debt from auto and student loans, mortgages, and credit cards. This figure assists individuals and economic experts in identifying the financial burdens that people face across the country. Residents of Kansas have an average consumer debt amount of $78,069, which is much higher than the national average.

Credit card debt

The average credit card balance in the state of Kansas is $5,335, slightly lower than the average credit card balance for Americans, which is $5,589. While lower than the average, we still see a majority of our customers reach out to us due to credit card debt.

At TurboDebt, we helped over a thousand Kansas residents with outstanding credit card balances and other unsecured debts last year.

Auto loan debt

Kansas residents owe an average auto loan debt of $4,430, which is below the national average of $5,210. The expected monthly payments, determined by the average credit score, are $673 for new cars and $508 for used cars.

Mortgage debt

The homeownership rate in Kansas is about 67%, with an average home value of $205,073 as of March 2023. The monthly median mortgage cost is $1,467, while the monthly median gross rent is $912.

Student loan debt

13.1% of Kansans have a student debt loan totaling $12.5 billion, ranking the state 33rd in student debt loans. The average resident of Kansas owes a student debt loan worth $32,578.

Household debt

Household debt in America rose to a new-time high of $16.90 trillion, largely due to the increase of mortgage balances of nearly $1 trillion in 2022. This also impacted the household debt of Kansans, whose average debt-to-income ratio increased to 1.197 limiting consumer spending as most of their disposable income went to debt payment.

With more Kansas residents struggling with household debt, our company has acted as a lifeline for people looking for a debt relief solution in the state.

Bankruptcy

The number of filed bankruptcy cases has been on a downtrend in the United States. Kansas residents filed 3,189 cases in 2022, down from 3,521 in 2021.

Chapter 13 bankruptcy was the highest, with 1,614 cases filed, followed by chapter 7 bankruptcy cases at 1,542, then chapter 11 bankruptcy cases at 27, and other cases at 6.

Average income and employment

Residents of Kansas have a median household income of $64,521 and a per capita of $34,968. The average household income is $87,033, and 6.6% of households in the state are high-income households making over $200,000 a year.

The unemployment rate in Kansas was 2.9% as of February 2023, with a labor participation rate of 66.2%.

Credit scores

The average credit score in Kansas is 721, while the national FICO score was 714 in 2022. This remained unchanged from the previous year as consumers found alternative ways of managing their personal debt since the year was characterized by interest rate hikes and shortages in supply chains.

Identity theft

Kansas is one of the leading states with high risks of identity theft, as identity theft reports increased by 94.75% during the pandemic when compared to pre-pandemic times.

However, other risk factors remained low, resulting in the state ranking 39th in identity theft reports with 2,273 cases. The state also ranked 32nd in fraud and other reports, with a total of 15,852 fraud reports and a median fraud loss of $300.

The top types of identity theft in the state include the following;

• Credit card fraud at 41%
• Other identity theft at 25%
• Bank fraud at 17%
• Phone number or utility fraud at 15%
• Loan or lease fraud at 12%

Banking and tax info

The personal income tax rate for the residents of Kansas starts at 3.10% and a top individual tax rate of 5.70%.

The state ranks 9th with a state sales tax rate of 6.50% and an average local sales rate of 2.20%. It also imposes a gasoline tax of 24.03 cents per gallon and a cigarette tax of $1.29 per 20 packs.

The top corporate income tax rate in Kansas is 7.0%, and a property tax rate of 1.32% on the total value of your home, while the state and local property collection per capita is $1,661.

TurboDebt’s internal statistics for 2022

In 2022, TurboDebt served a total of 1,221 clients, and 379 of them enrolled in our debt relief program. The average client enrolled debt was $21,576, leading to a total enrolled debt of $8,177,343. Out of the individual enrolled debt, we were able to save Kansas residents 56.41% on average before service fees; this translated to $4,612,839 saved debt.

Top Types of Debt to get Relief from in Kansas

The following are the top types of debt that Kansans can get relief from by enrolling in TurboDebt’s debt relief program.

Credit Card Debt

The recent hikes in interest rates by the federal government have resulted in increased interest rates in credit card debt of more than 19% APR, and when you’re late on monthly payments, you get charged late fees.

Often times this leads to borrowers ending up in a revolving debt cycle. When you consider the average credit card debt of $5,335, this results in a longer repayment period and interest payments exceeding the principal amount.

As such, Kansans can access debt relief through our debt relief program, which can help you pay off your credit card debt balance at a reduce monthly rate with fixed payments. Take advantage of our free consultation and see why our program has helped thousands!

Divorce Debt

Kansas is an equitable distribution state meaning that debt accumulated during a marriage is divided equally between spouses upon divorce. This might put you in a tight financial situation if your spouse has accumulated something like personal loan debt that can translate to divorce debt on your end.

With help from certified credit counselors, or our own specialists, you can be advised on the best debt relief plan to eliminate divorce debt, including seeking a debt settlement option. Get in touch to kick start your journey to financial literacy and freedom now!

Business Debt

The business environment in Kansas is conducive to starting, running, and growing a business. The state is among the top 10 states that are ideal for launching a business.

As such, many Kansans acquire business loans to facilitate the expansion or operations of their businesses, resulting in business debt. The accumulation of commercial debt can be a downside for businesses that need to catch up on monthly payments, hence falling under debt collection agencies.

Since business debt isn’t regulated by the Fair Debt Collection Practice Act, debt collectors may harass your business during debt collection. To avoid such financial outcomes, a debt management plan (DMP) or other solution can help you eliminate business debt. Our experts are trained to determine the best option for you unique situation, so don’t hesitate to get in touch.

Medical Debt

The state of Kansas has an annual average medical premium and deductibles of $9,195. With such a high amount coming out of the paycheck of Kansans, most residents have forgone such insurance plans resulting in medical debt when they fall ill.

Also, the high charges by medical institutions have led to the accumulation of more medical debt for the residents of Kansas. You can escape this tough financial situation by enrolling in TurboDebt’s program.

Homeowner Debt

Although homes are affordable in Kansas, residents struggle with homeowner debt due to the increased mortgage rates following the federal government’s interest hikes.

Such a situation may result in foreclosure, which most homeowners tend to avoid. At TurboDebt, we’re passionate about helping you overcome homeowner and mortgage debt by enrolling you in our once of our personalized debt relief programs, or recommending other options such as a credit counseling program.

Retirement Debt

Kansas is a good place to retire since it has an exemption on public pension income tax and a social security income of adjustable gross income of $75,000 or less.

However, this financial situation might result in retirement debt if the public pension funds continue to be unfunded. Although the state paid a $1 billion retirement debt, it didn’t clear its previous $6.7 billion retirement debt, which resulted in a $7,500 taxpayer burden.

Such financial situations result in the accumulation of retirement debt, making life after retirement difficult since most retirees depend on pension funds for survival.

At TurboDebt, we’ll help you tackle your retirement debt by enrolling you in our top-rated debt relief program. If you don’t qualify, don’t worry, as there are several other excellent options, such as local credit counseling services. Credit counseling agencies have certified credit counselors who’ll assist you in budgeting and money management to avoid retirement debt.

Options for debt relief in Kansas

The following debt relief options are available for escaping a never-ending debt cycle in Kansas.

Debt management programs

Debt management programs work by reducing the high-interest rates on credit card loan debt to 8% and also reducing the repayment period to 3-5 years.

DMPs are delivered by nonprofit credit counselors who hold a debt negotiation process with your lenders. This program only covers unsecured debt like credit card debt, while secured debt like mortgages and auto loans don’t work with debt management programs.

In DMPs, your existing credit cards will be closed to avoid accruing more personal loan debt, and you’ll deposit your monthly payments to a saving account. Your credit counseling company will then pay off the new loan balances from your savings account.

Debt consolidation loans

Debt consolidation loans work by accessing a new large loan to make a lump sum payment of your existing loans.  With an average credit score of 721, Kansans can access debt consolidation loans at lowered interest rates, making them eligible for debt consolidation as a debt relief option.

Debt consolidation loans are convenient since they reduce interest rates by eliminating high-interest loans. You’ll also be paying a single debt that has fixed interest rates and low monthly payments.

Examples of loans used in this debt relief option include home equity loans, balance transfer credit cards, and personal loans. Debt consolidation loans aren’t for residents with low credit scores because they may be expensive to them.

Debt settlement

Debt settlement plans are for residents who’re struggling to make their monthly payments, have fallen behind on loan repayment, and can’t meet their basic requirements. They work by negotiating for a partial lump sum payment of borrowers’ debts owed, and forgiving the rest of the loan balance.

Debt settlement companies negotiate a debt cancellation of up to 50% less with your creditors; during this time, you’ll stop making monthly payments until there’s a consensus on a debt settlement plan.

When pursuing a debt settlement company for debt relief, you should confirm its credibility through the better business bureau accreditation ranking. The BBB helps you avoid scammers who ask for an upfront fee to start the debt settlement debt relief option.

Credit counseling

Credit counseling agencies have certified nonprofit credit counselors to help borrowers who are behind or struggling to meet their monthly payments. The credit counselor assists you in avoiding filing for bankruptcy by negotiating for a waiver on late repayment fees, lowered interest rates, and choosing a debt relief option suitable to your debt-to-income ratio.

The nonprofit credit counselors also advise you on debt and money management, budgeting, and consumer credit. Once you enroll in a credit counseling plan, your eligibility for two free credit reports is assured.

Bankruptcy

Debtors tend to file for bankruptcy as the last option of debt relief since it impacts their credit reports for 7 to 10 years, thus affecting their eligibility for personal loans in the future.

Kansans can file for Chapter 7 bankruptcies where non-exempt properties are liquidated to clear your unsecured loan balance. You can also file for chapter 13 bankruptcy if you have a consistent monthly income that can settle the debt balance for 3 to 5 years instead of liquidating your assets.

Businesses in Kansas can file for Chapter 11 bankruptcies, where debt is reorganized, and a repayment option is formulated in line with the US bankruptcy code.

In bankruptcy, secured loan debt like car loan debt may result in repossession, while child support debt isn’t wiped clean from your credit report.

Debt forgiveness

In debt forgiveness, borrowers are forgiven part or all of their loan balances. Debts that are eligible for debt forgiveness programs include student loan debt, tax debt, mortgage debt, credit card debt, and medical debt.

Debt that has been forgiven must be filed as income tax with the IRS.

If you’re looking into debt forgiveness or any of the other options above and need assistance, TurboDebt is here to provide expert guidance, so don’t hesitate to give us a call.

Debt and Financial Hardship Resources

The following debt and financial hardship resources are available for low-income residents, the disabled, the elderly, children, and any resident experiencing financial hardship.

Temporary assistance programs

Residents of Kansas can qualify for the temporary assistance program for only 24 months in their lifetime. The TANF program offers cash assistance, employment support programs, and employment services to low-income families.

Your eligibility for the TANF program is determined if you’re 18+ years of age, have an income that’s 28% below the federal property level, and have household assets less than $2,250.

State health and human services

The state has Nutrition and WIC services that offer personalized nutrition, facilitate buying of healthy foods, and provide referrals to beneficial services for low-income families, especially pregnant moms, breastfeeding and pregnant women, and kids under five years of age.

The EDW Program offers a free or low-cost breast and cervical cancer screening program that aims to reduce diseases and deaths from breast and cervical cancer.

The state has an Injury and Violence Prevention Program that’s funded to prevent and educate Kansans on sexual violence, violent death, and suicide.

Kansas has a Preventive Health and Health Services Block Grant that’s funded by the CDC to provide assistance in emerging health issues, maintain healthy communities, and monitor the health of targeted populations.  The program funds various health topics including oral health, emergency medical services, heart disease and stroke, and immunization and infectious disease.

Child care

The state offers free vaccines for children under the age of 18 years to prevent diseases that result in early childhood death and disability.

The Children’s Developmental Services is a childcare service that seeks to identify early developmental delays or disorders in newborns, infants, and babies.

The high risk of lead poisoning to Kansas children led to the formulation of the Kansas Childhood Lead Poisoning Prevention Program, which shares successful ways of preventing lead poisoning in children.

The Safe Kids Kansas Coalition is a funded organization that seeks to prevent childhood injuries for children under the age of 19 years.

Shelters for the homeless

If you’re in a tight financial situation and are experiencing homelessness, you can call in advance to check the availability of the following homeless shelters;

• Abbyville homeless shelter
• Cheney homeless shelter
• Fort Scott homeless shelter

Free transportation services

Medicaid Non-Emergency Medical Transportation is available for disabled and elderly residents with a maximum savings of $2,000 and limited monthly income.

The Ride KC Transit Services offer low-cost or free transportation services within the state. This is convenient for 65+ olds and people with disabilities.

The state also has a single streetcar line that offers free transportation services for the residents of Kansas City.

Conclusion on Finding Debt Relief in Kansas

Getting out of debt shouldn’t be a daunting task for Kansans, and that’s why here at TurboDebt we can help you navigate these uncertain times and recommend the best debt relief options for your situation. Our professionals can help you escape the never-ending cycle of debt, whether you have credit card debt, medical bills, or other types of debt.

Let us help you make an informed decision and regain control of your finances with our reputable debt relief process. Take advantage of our free consultation now!