Debt Relief Programs for Kansas Residents in 2025
4 MIN READ
Published April 04, 2023 | Updated January 21, 2025
Expert Verified
Written by Christie Hudon
Edited by Wes Silver
Reviewed by Brad Reichert
In a Nutshell
With endless waves of grain and sunflowers dotting its rolling plains, Kansas is a land rich in resources. However, it’s not all over the rainbow for many residents struggling to pay bills and keep up with the ever-increasing costs of inflation.
In the Sunflower State, 11% of residents live in poverty, making far less than the state’s median income of $72,639. Statistics like this prove that many Kansans need help overcoming debt that limits their spending power and monthly income.
Read on to learn more about debt relief options in Kansas and find the best solution for your finances.
Your Options To Get Out of Debt in Kansas
Credit Counseling
Certified credit counselors provide support while discussing possible solutions to your financial situation when you’re struggling with debt.
| How It Works in Kansas |
| Connecting with a credit counseling program gives you the opportunity to learn more about your credit history through unbiased financial advice and one-on-one coaching. Many credit counseling organizations offer financial education courses, giving you the necessary tools to reshape your fiscal future. |
| Pros |
| Credit counseling programs offer personalized advice to help you chart the right course for paying off your current debts and avoiding more in the future. |
| Cons |
| Credit counseling doesn’t actually involve the immediate reduction of your debt, and you may need to complete several financial courses that require a significant time commitment once you enroll in a program. |
| Cost |
| Most credit counseling programs offer reasonable fees for their services. Low-income residents may also qualify for low or no-cost services. |
| Stats |
| While this method is helpful, credit counseling has become less prevalent than debt settlement in the last decade, according to the Consumer Financial Protection Bureau. |
| Resources |
| The Financial Counseling Association of America offers a resource to help Kansas consumers find qualified local credit counselors. |
Debt Management
Using a debt management program (DMP) helps structure monthly payments through a nonprofit or private financial organization.
| How It Works in Kansas |
| Many credit counseling agencies also offer DMPs, which can be a good starting point for relieving debt after Kansans connect with a certified credit counselor. You’ll begin by making a single monthly payment to the debt management organization that sends funds to each of your creditors on your behalf. |
| Pros |
| Once you enroll in a DMP, you’ll create a debt management plan with the organization and your creditors, often securing lower interest rates and waived fees. You’ll also reduce the chances of sending payments late or not in the right amount because the organization handles it. |
| Cons |
| Many debt management programs require you to close out most, if not all, of your credit card accounts to limit additional spending while trying to pay down your current debts. |
| Cost |
| Using a DMP will cost you a startup fee (typically $40 or less) and a monthly administration fee for each account you enroll, ranging from $20-30 per account. |
| Stats |
| Kansans carry an average consumer debt of $80,961, with credit card balances and student loan payments often accounting for the highest totals after mortgage loans. |
| Resources |
| Learn how debt management works to determine if it’s right for you. |
Debt Consolidation
Reducing and eliminating debt through consolidation is often helpful for Sunflower State citizens with small to medium-sized debts.
| How It Works in Kansas |
| Kansans can open a zero-interest balance transfer credit card or take out a loan big enough to cover their current debts through a traditional bank or credit union. |
| Pros |
| Opening a low or zero-interest balance transfer credit card allows you to catch up on payments and eliminate balances within the introductory period. A debt consolidation loan basically reorganizes your debt into a new, single monthly payment, ideally at a much lower interest rate. |
| Cons |
| Anything left on a balance transfer account after the initial zero-interest period expires (typically in 12-18 months) reverts back to your card’s standard APR for purchases, which can be as high as 29%. This could end up costing you exorbitant interest charges and account fees. Consolidation loans require borrowers to carry a strong credit score to qualify for lower interest rates. Also, if you end up paying off the new loan for an extended period of time, you could actually pay more in interest than you would have with the original debts before consolidating them. |
| Cost |
| Costs for debt consolidation vary widely based on your current debt amount and the interest rate you secure on your new consolidation loan or balance transfer card. Usually, credit cards with an initial balance transfer promotion will charge you a one-time convenience fee of 3% to 5% of the balance(s) transferred to move your existing balances to your new card. |
| Stats |
| Kansans have a strong average credit score of 712, making it easier for many residents to secure loans at a lower interest rate. Remember, with debt consolidation, the lower your interest rate, the easier it is to eliminate your debts. |
| Resources |
| Read more details about the pros and cons of debt consolidation loans. |
Debt Settlement
Entering into a debt settlement program is often an effective way to clear large debts by reducing the total amount you owe to creditors. You do this by offering a one-time, lump-sum payment to settle your debt in full instead of continuing to pay interest and make smaller monthly payments.
| How It Works in Kansas |
| Kansans can negotiate with creditors independently or work with a debt settlement organization that speaks to creditors and negotiates with them on the borrower’s behalf. |
| Pros |
| Debt settlement often saves consumers 50% of their total debt (before fees) and typically helps Kansas residents pay off debt faster. |
| Cons |
| While Kansans typically pay off debt quicker through this method, it negatively impacts credit scores for several years because you’ll have to stop paying your lenders while you save up the lump-sum payment amount. |
| Cost |
| Debt settlement companies charge administrative fees ranging from 15-25% of your total enrolled debt after negotiating an acceptable settlement for you. |
| Stats |
| Many consumers use debt settlement to find relief from high credit card balances. Kansas residents carry an average credit card debt of $6,818. |
| Resources |
| Read more about how debt settlement works and how it can impact your finances. |
Bankruptcy
Bankruptcy is a final option for Kansans who’ve pursued other forms of debt relief to no avail. Once you file for bankruptcy, the court within your local jurisdiction allocates debt repayments and processes your petition for debt relief under your state's bankruptcy regulations.
| How It Works in Kansas |
| Most individual consumers in Kansas file either Chapter 7 or Chapter 13 bankruptcy. |
| Pros |
| Bankruptcy often involves absolving debts beyond what you can pay with the proceeds from selling your non-exempt assets. You’ll likely get a fresh financial start to rebuild your credit and save more of your income. |
| Cons |
| Although bankruptcy does a lot to reset your finances, it can also severely limit your access to new credit for up to 10 years after the proceedings are discharged. This means it’ll be harder to open new lines of credit for big purchases like a home or car. |
| Cost |
| Depending on legal fees, bankruptcy costs can range from $750 to over $4,000. You’ll also pay for administrative fees to file documents with the court and take a pre-bankruptcy credit counseling course before you can move forward with your petition. |
| Stats |
| In 2024, a total of 3,825 Kansans residents filed for some form of bankruptcy. This represents an increase of 9.3% from the previous year. |
| Resources |
| We strongly recommend you pursue legal advice from a bankruptcy attorney before making any decisions. However, here’s a guide to your financial life after you declare bankruptcy. |
What You Need To Know About Debt in the State of Kansas
Statute of Limitations on Debt Collections in Kansas
The Statute of Limitations on Debt regulates how long creditors can pursue Kansans for debt repayments via the state’s court system. While debt never disappears, the Sunflower State’s laws govern the amount of time creditors can sue debtors to recover unpaid balances.
Here’s a look at Kansas’ Statute of Limitation on different types of debt:
| Type of Debt Agreement | Length of Time Collectible |
|---|---|
| Written Contracts | 5 years |
| Promissory Notes | 5 years |
| Open-Ended Agreements | 3 years |
| Oral Agreements | 3 years |
| Medical Debt | 5 years |
Resources for Financial Assistance in Kansas
While the Sunflower State doesn’t provide any government debt relief programs, Kansas offers residents help to overcome financial hardship in multiple areas. After Kansas stimulus checks provided much-needed assistance in the wake of the COVID-19 pandemic, the state continues to provide programs offering help to those in need.
Here are some of Kansas’ top programs for those facing financial hardship:
- Temporary Assistance for Needy Families (TANF): Kansas’ TANF program provides cash assistance to families in need who meet specific requirements.
- Supplemental Nutrition Assistance Program (SNAP): Kansas offers food assistance by administering the federal SNAP program to qualifying state residents, including the elderly, disabled, and low-income families and individuals.
- Child Care Assistance: This program offers subsidies to help residents afford payments for child care services.
- Energy Assistance: The Low-Income Energy Assistance Program (LIEAP) provides a one-time cash benefit to subsidize home energy costs.
Brad Reichert, a debt expert and the founder and managing director of Reichert Asset Management LLC, shares information about another program to help Kansans clear debts.
“The Kansas Loan Pool Project (KLPP) is a comprehensive program created by the Catholic Charities of Northern Kansas, which offers guidance to individuals trapped in high-interest payday and title loan debt,” explains Reichert.
“KLPP and the Catholic Charities organizations collaborate with Sunflower Bank, one of the largest regional banks in the Midwest, to refinance these predatory, high-interest loans into a traditional loan with a low interest rate of 6.0%. KLPP clients are also offered monthly financial coaching and case management during the term of the loan,” says Reichert.
“To qualify, applicants must have a regular source of income, and the original predatory debt must be less than $2,500. The applicant must demonstrate the ability to repay the loan under the reduced interest rate and a reasonable fixed loan term,” Reichert adds.
Get Professional Help Paying Off Your Debt
Kansans caught in a cycle of debt from huge balances and high interest charges aren’t alone. In 2023 alone, TurboDebt helped Sunflower State residents overcome millions of dollars in enrolled debts. In the same year, TurboDebt enrolled an average client debt of over $22,000, saving consumers an average of 55% of their total debts before fees.
With over 15,000 positive reviews on Google and Trustpilot, TurboDebt is a reliable partner for effective debt relief programs.
More reasons to try TurboDebt include:
- Fully accredited by the Better Business Bureau
- Faster repayment on unsecured debts
- No upfront fees for services
- Consistently rated 5-star service
- Flexible repayment schedule
Don’t let debt stop you from living your best Kansas life. Contact the team at TurboDebt today to see if you qualify for trusted debt relief services. It’s time to regain your financial freedom with TurboDebt.
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