Kansas Debt Relief

Kansas residents frequently struggle with outstanding debts from medical bills, credit cards, mortgages, loans, or even devastating life events such as divorce. Kansas' average consumer debt per person is $78,069, making it challenging to achieve a debt-free life.

Thankfully, individuals in the Sunflower State have several debt relief options available to them, including debt consolidation, debt settlement, and bankruptcy. 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 a high average credit score of 721, which is advantageous for accessing low-interest loans for mortgages, especially since the housing market in Kansas remains comparatively affordable.

Accessible housing has attracted an influx of inbound migration to the state, especially the elderly, since Kansas offers an income tax exemption on pension income. The cost of living is also 14% below the country’s average, which draws residents to the Sunflower State.

How Does Debt Relief Work in Kansas?

One of the most effective ways to access debt relief is by seeking help through a certified debt relief company. Once you enroll in a program, these organizations work to manage and clear your mortgage or auto loan debt, credit card balances, or other unsecured debts.

Some of the most popular options for relief involve negotiating for lowered interest rates, lowered monthly payments, waived late fees, or partial debt forgiveness. This is crucial in achieving a debt-free life in the shortest amount of time possible.

Kansas Debt and Finance Statistics

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 aids 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 national average of $5,589. While lower than in many states, we still see a majority of our customers reach out to us because of credit card debt.

At TurboDebt, we've helped thousands of Kansas residents with outstanding credit card balances and other unsecured debts find relief.

Auto Loan Debt

Kansas residents owe an average auto loan debt of $4,430, which is well below the national average of $5,210. Expected monthly payments, determined by Kansas consumers’ average credit scores, 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 (including only principal and interest) is $1,467, while the monthly median gross rent is $912.

Student Loan Debt

In Kansas, 13.1% of residents carry student loan debt totaling $12.5 billion, ranking the state 33rd in student debt loans. The average Kansas resident owes a total student loan debt of $32,578.

Household Debt

Household debt in America rose to a new high of $16.90 trillion, largely due to the increase in mortgage balances to nearly $1 trillion in 2022.

This also impacted Kansans' household debt, whose average debt-to-income ratio (DTI) is 1.16. 

A high DTI limits consumer spending for many Kansas residents, as a large portion of disposable income goes to debt repayment.

Bankruptcy

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

Chapter 13 bankruptcy had the highest number of cases, with 1,614 filed, followed by Chapter 7 bankruptcy cases at 1,542, then Chapter 11 bankruptcy cases at 27.

Average Income and Employment

Residents of Kansas have a median household income of $64,521 and a median per capita income of $34,968 per year. 

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

Credit Scores

In 2022, Kansas enjoyed an average credit score of 721, well above the national average of 714. 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, like other states, has experienced a rise in incidents of identity theft, as reports increased by 94.75% during the pandemic when compared to pre-pandemic times.

However, other risk factors remained low, resulting in the Sunflower 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 per case.

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 state income tax rate for Kansas residents starts at 3.10% and increases with the taxpayer’s income, up to a top individual state tax rate of 5.70%.

Kansas has a sales tax rate of 6.50% and an average local county and city sales tax 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 assessed value of your home, while the state and local property tax amount per capita is $1,661.

How TurboDebt Helped Kansas Residents Eliminate Debt in 2023

In 2023, TurboDebt served a total of 2,131 clients, and 621 of them enrolled in our debt relief program. The average client enrolled debt was $22,359, leading to a total enrolled debt of $13,884,903. Out of the individual enrolled debt, we were able to save Kansas residents 54.57% on average before service fees. Contact us today to find out how we can help you become debt-free.

Top Types of Debt to Get Relief from in Kansas

The top types of debt Kansas residents can find relief from include:

Credit Card Debt

Recent interest rate hikes from the Federal Reserve Bank have resulted in an APR of more than 27% for most credit cards. On top of that, when you’re late on monthly payments, you face fees and increased interest rates on any new balances you charge on the card.

This often leads borrowers into an unending cycle of debt. With the average credit card debt in the U.S. well over $5,000, what often results is a longer repayment period and interest payments exceeding the principal amount.

As such, Kansans can access debt relief programs through organizations like TurboDebt, which can help residents pay off credit card debt balances at a reduced monthly rate through fixed payments. Take advantage of our free consultation and see why our program has helped thousands.

Divorce Debt

Kansas abides by an “equitable distribution” legal philosophy when it comes to divorce, meaning that debt accumulated during a marriage is divided fairly, but not necessarily 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 after you split.

Get advice and help from certified credit counselors or our own debt reduction specialists to find the best debt relief plan to eliminate divorce debt, including seeking a debt settlement option. Call for a free consultation to kick-start your journey to financial freedom now!

Business Debt

Many Kansans acquire business loans to facilitate the maintenance and expansion of their companies, resulting in what can easily become substantial business debt. The accumulation of commercial debt can be a downside for businesses that need to catch up on monthly payments before getting calls from debt collection agencies.

Since the Fair Debt Collection Practice Act doesn’t regulate business debt as it is with personal debt, debt collectors may be free to harass you and your business office about past-due balances. To avoid such financial outcomes, a debt management plan (DMP) or other solution can help you substantially reduce or even eliminate your business debt. Our experts are trained to determine the best option for your unique situation, so don’t hesitate to get in touch.

Medical Debt

The state of Kansas has an annual average medical premium and potential maximum out-of-pocket deductible of $9,195 each year. Unfortunately, this amount continues to rise each year as health care costs outpace all other forms of inflation. With such a high amount coming out of the paycheck of average Kansans, some residents have foregone such insurance plans resulting in substantial medical debt when they fall ill.

The abnormally high charges imposed on uninsured patients for even the simplest of procedures have led to the accumulation of more medical debt than ever before for the residents of Kansas. If you’re dealing with medical debt that never seems to go away, consider seeking relief options through TurboDebt.

Homeowner Debt

Although homes are affordable in Kansas, residents still struggle with homeowner debt due to the increased mortgage rates following the Federal Reserve Bank’s interest rate hikes. This kind of situation can even result in foreclosure, which most homeowners want to avoid. 

At TurboDebt, we’re passionate about helping you overcome homeowner and mortgage debt by enrolling you in one of our personalized debt relief programs or recommending other helpful options.

Retirement Debt

Kansas is rated as a good place to retire, partly because it has an exemption on public pension and social security income for taxpayers whose Adjusted Gross Income (an AGI) is $75,000 per year or less.

However, any unexpected costs can make life after retirement difficult since most retirees depend on fixed monthly income payments from pension funds for their living expenses. At TurboDebt, we’ll help you tackle your retirement debt by enrolling you in our debt relief program.

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 (DMPs) work by reducing interest rates on credit cards from as high as 30% to as low as 9%-10%.  These programs may also be able to reduce the time it takes to pay off an otherwise stubborn high-interest credit card balance to 3-5 years.

DMPs are offered through private companies and nonprofit organizations. When you enroll, credit counselors or other professionals interact with lenders to negotiate on your behalf. These programs often cover unsecured debt, such as credit card debt, not secured debt, like mortgages and auto loans.

In DMPs, once these organizations are able to negotiate a compromise for you, your existing credit cards are typically closed to avoid accruing more personal debt. Next, you’ll deposit your monthly payments into a savings account. Your credit counseling company will then pay off the new loan balances from your savings account.

Debt Consolidation Loans

Debt consolidation loans allow you to secure a loan that’s large enough to make a lump sum payment. This can effectively “refinance” each of your existing loans or outstanding accounts into one single payment, often with a lower interest rate.  

With an average credit score of 721, Kansans are more likely to access debt consolidation loans at lower interest rates, making debt consolidation a viable option.

Debt consolidation loans are convenient and effective because they replace high-interest loans with loans at notably lower interest rates. You’ll also be paying a single debt with a fixed interest rate (APR) and lower monthly payments due to a longer term over which payments are then made.

However, when you take out a consolidation loan, you may pay more in overall interest if your new rate isn’t low enough to save you money over the course of your payments. In addition, debt consolidation loans are typically most beneficial for Kansas residents with ”good” to “very good” credit scores because they are better able to get their consolidation loan approved at a lower interest rate than the average rate on their existing debts.  

Debt Settlement

Debt settlement plans can be an effective option for residents struggling to make their monthly payments or those who've fallen behind on loan repayment. In a debt settlement, either you or a debt relief professional negotiates a reduced payoff amount for your outstanding balance.

Debt settlement companies can help you negotiate for an amount that’s up to 50% less than your current balance.  During the negotiation phase, you’ll stop making monthly payments until all parties reach a consensus on a debt settlement plan.

When pursuing the services of a debt settlement company, it’s a good idea to confirm the organization’s credibility and rating with the Better Business Bureau’s (BBB’s) accreditation rankings. The BBB helps you avoid any potential scams. These scams break consumer protection laws by asking for an upfront fee to start your debt settlement debt relief program before they even show you any kind of measurable results.

Credit Counseling

Credit counseling agencies, which are often supported by non-profit organizations, have certified credit counselors to help borrowers who are behind on or struggling to meet their monthly payments. A credit counselor offers financial advice and helps you make a plan to get out of and avoid debt.

These nonprofit credit counselors can also educate and advise you on topics such as money management, budgeting, and consumer credit. Once you enroll in a credit counseling plan, you're often eligible for free credit reports and scores from all three of the major credit reporting agencies.

Bankruptcy

Debtors tend to file for bankruptcy as a “last-resort” debt relief option since filing often negatively impacts their credit reports for up to 10 years. This can affect their eligibility for automobile, mortgage, and personal loans for future purchases.

Kansans can choose to file for Chapter 7 bankruptcy, in which non-exempt properties are liquidated to clear their unsecured loan balances. Kansans can also choose to file for Chapter 13 bankruptcy if they have a consistent monthly income that can settle the debt balance with a court-approved repayment plan. This plan is designed to help them pay their debts over a period of 3 to 5 years instead of liquidating their assets.

Businesses in Kansas can file for Chapter 11 bankruptcy, which involves completely reorganizing their operations and debt and formulating a repayment option in accordance with the U.S. bankruptcy code.

Debt Forgiveness

In debt forgiveness, borrowers are fully relieved of part or even all of their existing loan balances. Debts that are eligible for forgiveness programs include student loans, income and property tax debt, as well as mortgage, credit card, and medical debt.

Most debt forgiveness programs are offered through the U.S. government at the federal or state levels. To qualify for a program, you'll need to meet stringent requirements based on factors like your income or job status. 

It's also important to note that debt that has been forgiven must be reported as ordinary income. Any income tax due on it must be paid along with your income tax return for the year in which your debt was forgiven. 

Debt and Financial Hardship Resources

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

Temporary Assistance Programs

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

You're eligible for the TANF program if you’re 18+ years of age, have an income that’s at least 28% below the federal poverty level, and have household assets less than $2,250.

Brad Reichert, a debt expert and the founder and managing director of Reichert Asset Management LLC, offers additional ideas on getting emergency debt help. “Among other social support and financial assistance programs, the Catholic Charities of Northern Kansas offers relief from predatory debt, where individuals may be trapped in high-interest payday and title loans, which often carry with them APRs that are well in excess of 300% on an annualized basis,” Reichert shares.  

“Through the Kansas Loan Pool Project (the KLPP), Catholic Charities collaborates with Sunflower Bank to refinance predatory high-interest loans into a traditional loan with a very low fixed interest rate of just 6.00%,” Reichert adds.

State Health and Human Services

The state of Kansas offers Nutrition and WIC services for personalized nutrition support programs, including assistance with purchasing healthy foods and referrals to beneficial services for low-income families. The WIC program specifically supports pregnant or breastfeeding 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 from these health risks. Kansas also offers an Injury and Violence Prevention Program that’s funded to prevent and educate Kansans on topics such as sexual violence, violent death, and suicide.

Child Care

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

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

The high risk of lead poisoning in 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 charitably funded organization that seeks to prevent childhood injuries in children under 19.

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 adults aged 65 and older and people with disabilities. The state also offers a single streetcar line that offers free transportation services for the residents of Kansas City.

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 help you navigate times of financial hardship 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 outstanding personal loans.

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!