Turbo Takeaways
- With household debt at record highs, Kansans are also feeling the squeeze as living costs outpace local wages.
- From Wichita to Topeka, debt relief programs such as credit counseling and debt settlement offer structured ways to regain financial stability.
- Debt relief can help Kansans simplify their payments and work toward a real, debt-free life.
Your Options To Get Out of Debt in Kansas
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.
Credit Counseling
Certified credit counselors provide support while discussing possible solutions to your financial situation when you’re struggling with debt.
How It Works
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 and budgeting strategies, providing you with the necessary tools to reshape your financial future.
Pros
- Low-cost access to certified financial guidance
- Personalized budgeting and repayment strategies
- Educational tools to strengthen long-term money habits
Cons
- Does not directly reduce existing debt
- Success depends on applying counselor's advice
- Fees may apply for ongoing sessions
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
Debt management helps structure monthly payments through a nonprofit or private financial organization.
How It Works
Many credit counseling agencies also offer debt management programs (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
- One monthly payment replaces multiple bills
- May lower interest rates and waive late fees
- Predictable plan to eliminate debt within a set time
Cons
- Requires closing most credit card accounts to limit additional spending
- Missing payments can void negotiated terms
- Enrollment and monthly fees may apply
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 to $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 can be particularly helpful for Sunflower State citizens with small to medium-sized debts.
How It Works
Kansans can open a zero-interest balance transfer credit card or take out a debt consolidation loan big enough to cover their current debts through a traditional bank or credit union.
Pros
- Simplifies repayment by merging multiple debts into one bill
- Consolidation loans can lower interest rates and reduce total costs
- A balance transfer card offers temporary 0% interest to pay off credit cards faster
Cons
- Requires strong credit to qualify for favorable rates
- Long repayment terms on consolidation loans can raise overall interest costs
- Unpaid balances after the promo period on transfer cards can trigger high APRs
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.
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.
How It Works
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.
You can settle your debt by offering a one-time, lump-sum payment to pay it off in full, rather than continuing to pay interest and make smaller monthly payments.
Pros
- Can reduce unsecured debt by up to 50% before fees
- Faster path to financial relief than long repayment plans
- No upfront fees until settlements are finalized
Cons
- Hurts credit during the negotiation period
- Creditors may reject settlement offers
Cost
Debt settlement companies charge administrative fees ranging from 15% to 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.
How It Works
Bankruptcy often involves absolving debts beyond what you can pay with the proceeds from selling your non-exempt assets.
Most individual consumers in Kansas file either Chapter 7 or Chapter 13 bankruptcy. 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.
Pros
- Provides legal protection from creditor actions
- May eliminate qualifying unsecured debts entirely
- Offers a financial reset and fresh start
Cons
- Severely affects credit for up to 10 years
- Court and attorney fees can be expensive
- Certain debts, like taxes or student loans, can’t be discharged
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 Kansas residents filed for some form of bankruptcy (PDF). This represents a 9.3% increase from the previous year.
Resources
Here’s a guide to your financial life after you declare bankruptcy. Nevertheless, it is highly recommended that you pursue legal advice from a bankruptcy attorney before making any decisions.
What You Need To Know About Debt in 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 Limitations 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.
Following the issuance of Kansas stimulus checks, which provided much-needed assistance in the wake of the COVID-19 pandemic, the state continues to offer programs that offer 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 seniors, people with disabilities, 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 founder of Reichert Asset Management LLC, shares information about another program designed to help Kansans clear their 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. A trusted debt relief company like TurboDebt® can help Sunflower State residents overcome debt balances and regain financial stability.
Our team of experts has assisted hundreds of Kansas residents, helping them save an average of 55% of their total debts before fees.
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
With over 20,000 positive reviews on Google and Trustpilot, we are a reliable partner for effective debt relief programs.
Don’t let debt stop you from living your best life. Contact the team at TurboDebt today to see if you qualify for our trusted debt relief services. It’s time to regain your financial freedom!