Debt can be overwhelming, but you don’t have to go through it alone. There are options for debt consolidation in Kansas. Asking for help is the first step toward financial independence. With hard work and determination, you can break the cycle of indebtedness and regain your financial stability.
Although Kansans have an average credit card balance of $7,000 and an average credit score of 680, they still face many challenges regarding credit card debt. The average cardholder in Kansas uses over 31% of their available credit, which can negatively impact their credit score. This makes it difficult for people in Kansas to find do-it-yourself debt relief options that work for them. As a result, many people in the state need to seek professional help to become debt free.
Kansas Credit Card Debt Statistics
The next statics can give you an idea of the average credit card debt situation in Kansas.
- Household: $7,040
- Credit limit: $15,557
- Most popular credit card: Balance transfer
- The Credit utilization ratio and debt: 31.29%
- Number of cards: 2.82
- % of delinquent accounts (the last 90 days): 5.89%
- Credit score: 680
Options For Debt Relief In Kansas
Debts can quickly become unmanageable for many reasons, one of which is high-interest rates. Monthly installments can feel completely unattainable when you’re paying on multiple accounts with interest accumulating, especially when your income doesn’t cover your basic living expenses and bills.
There are steps you can take to reduce and consolidate debt in Kansas. Read on for more information.
Doing debt relief in Kansas could be a great way to reduce your monthly payments and save money on interest and late fees. By taking out a personal loan and using the loan proceeds to pay off your other accounts, you can simplify your finances and have just one payment to worry about each month. Ideally, you can set up auto-pay, so you never have to worry about missing a payment date. This is a popular option for Kansans and can help you get your finances under control.
Using a cosigner can help you qualify for an unsecured personal loan, even with a less-than-perfect credit score or high debt-to-income ratio. The cosigner would be responsible for making the loan payments in the event that you’re unable to do so.
Another option for securing a personal loan is by using assets as collateral. For example, your car or other high-end items you own could act as security for the agreement.
Homeowners with a high mortgage or auto loan interest rates may save money by refinancing their debts. A cash-out refinance of a home mortgage can be used as a debt management tool, providing the homeowner has more than 20% equity in the property. With a new loan, the homeowner may owe more than the current mortgage balance.
Taking out a cash-out refinance on your home could give you a lump sum of cash to pay down your other debts. This may be a good option for those struggling with high-interest credit card balances and other unsecured debts. Keep in mind, however, that by doing this, you are increasing the amount owed on your property. So make sure you are confident in your ability to make the new mortgage payments before going through with this option – otherwise, it could jeopardize your home.
Balance Transfer Card
There are many benefits to having a good credit score. One of the best is that you can often qualify for a balance transfer credit card. This type of card typically has a low-interest rate or introductory promotional rate of 0%. This means that you can transfer your current balances to the new card and save money on interest charges. Just be sure to pay off the balance before the regular interest rate kicks in (usually after 12 to 21 months).
Bankruptcy In Kansas
When you find yourself unable to repay your debts, it may be time to speak with a credit counselor or local attorney. They can help you understand your financial situation and whether bankruptcy might be the best option for you.
Chapter 7 bankruptcy allows you to sell your assets and use the proceeds to pay off your creditors. Chapter 13 bankruptcy, on the other hand, may let you keep your assets but requires that you enter into a three- to five-year payment plan to settle your debts. This type of bankruptcy is typically for people who have a steady income that can be used toward their debts.
Bankruptcy should not be your first choice when you are in debt, but it may provide relief. Your credit will suffer in the short term after bankruptcy proceedings, but you can rebuild your credit within a few years by avoiding new debt.
Statute Of Limitations
The statute of limitations is the period of time during which a creditor can take legal action to collect a debt. Once this period expires, the creditor can no longer sue you or garnish your wages. However, they may still attempt to collect the debt out of court. Keep in mind that the statute of limitations is reset whenever you acknowledge the debt or make a payment on it. Therefore, even though a payment plan offered by a creditor may be outside of the statute of limitations, accepting it will restart the clock and allow them to sue for the debt.
It’s important to know the statute of limitations for different types of debt in your state. This will help you determine whether or not your debt is still eligible for legal action. In Kansas, the statute of limitations for various types of debt is as follows:
|Mortgage Debt||5 years|
|Medical Debt||5 years|
|Credit Card||3 years|
|State Tax Debt||10 years|
|Auto Loan Debt||4 years|
There is no need to feel ashamed or embarrassed about debt. In Kansas, there are many options and resources available to help you get your finances back on track. You can consolidate your debts, take more extreme measures, or simply remain calm and understand your rights in order to make the best decisions for your financial situation. No matter what route you choose, remember that help is always available.Clearone Advantage, Credit Associates, Credit 9, Americor Funding, Tripoint Lending, Lendvia, Simple Path Financial, New Start Capital, Point Break Financial, Sagemore Financial, Money Ladder, Advantage Preferred Financial, LoanQuo, Apply.Credit9, Mobilend