Kansas Debt Relief
17 MIN READ
Published April 04, 2023 | Updated August 31, 2023
In a Nutshell
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 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 is affordable.
Accessible housing 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.
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 personal 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, waiver of penalty 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 below the national average of $5,210. Expected monthly payments, determined by the average credit score, are $673 for new cars and $508 for used cars.
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
In Kansas, 13.1% of residents carry student loan debt 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 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 the household debt of Kansans, whose average debt-to-income ratio sits at 1.149, limiting consumer spending as a portion of their disposable income went to debt repayment.
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 per capita income of $34,968.
The unemployment rate in Kansas was 2.9% as of April 2023, with a labor participation rate of 66.2%.
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.
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.
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% with a top individual tax rate of 5.70%.
The state has a 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.
How TurboDebt Helped Kansas Residents Eliminate Debt in 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. 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
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. On top of that, when you’re late on monthly payments, you get charged late fees.
This often leads borrowers into an unending cycle of debt. When you consider the average credit card debt is over $5,000, 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 reduced monthly rate with fixed payments. Take advantage of our free consultation and see why our program has helped thousands.
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 after you split.
Get advice and help from certified credit counselors or our own 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!
Many Kansans acquire business loans to facilitate the expansion or operations of their companies, resulting in business debt. The accumulation of commercial debt can be a downside for businesses that need to catch up on monthly payments before falling under debt collection agencies.
Since business debt isn’t regulated by the Fair Debt Collection Practice Act, debt collectors may harass your business to collect a debt. 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 your unique situation, so don’t hesitate to get in touch.
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, some 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 seeking relief options through TurboDebt.
Although homes are affordable in Kansas, residents struggle with homeowner debt due to the increased mortgage rates following the federal government’s interest rate hikes.
Such a situation may 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 options, such as a credit counseling program.
Kansas is rated 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 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 high interest rates on credit cards to as low as 8% and also reducing the repayment period to 3-5 years.
DMPs are offered through private companies and nonprofit organizations that can interact with lenders on your behalf. These programs cover unsecured debt like credit card debt, not secured debt like mortgages and auto loans.
In DMPs, your existing credit cards are typically 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 allow you to secure a large loan to make a lump sum payment to eliminate your existing loans or outstanding accounts. With an average credit score of 721, Kansans have a better chance to access debt consolidation loans at lower interest rates, making debt consolidation a viable 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.
However, you may end up paying off the debt for a longer period or paying more in interest if you can't secure a low rate. Debt consolidation loans aren’t for residents with low credit scores because they may more expensive in the end.
Debt settlement plans can be an effective option for residents who’re 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 a payment of up to 50% less with your creditors. During the negotiation phase, you’ll stop making monthly payments until all parties reach a consensus on a debt settlement plan.
When pursuing a debt settlement company, confirm its credibility through the Better Business Bureau (BBB) accreditation ranking. The BBB helps you avoid scammers who ask for an upfront fee to start the debt settlement debt relief option.
Credit counseling agencies have certified nonprofit credit counselors to help borrowers who are behind 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.
Nonprofit credit counselors also advise you on money management, budgeting, and consumer credit. Once you enroll in a credit counseling plan, you're often eligible for free credit reports.
Debtors tend to file for bankruptcy as the last debt relief option since it impacts their credit reports for up 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 loans may result in repossession. Child support debt isn’t wiped clean from your credit report, either.
In debt forgiveness, borrowers are forgiven part or all of their loan balances. Debts that are eligible for forgiveness programs include student loan, tax, 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 income or job status. It's also important to note that debt that has been forgiven must be filed as income tax with the IRS.
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 28% below the federal poverty level, and have household assets less than $2,250.
State Health and Human Services
The state offers Nutrition and WIC services for personalized nutrition, assistance for purchasing healthy foods, and 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 from these health risks. Kansas also offers an Injury and Violence Prevention Program that’s funded to prevent and educate Kansans on sexual violence, violent death, and suicide.
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 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 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 offers 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 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!