Turbo Takeaways

  • KC residents struggling financially can access effective debt relief solutions like credit counseling, debt settlement, debt management programs, and debt consolidation.
  • TurboDebt saved Kansas City, MO residents an average of 55% of their total debt before fees in 2023.
  • Kansas City, Missouri residents face the challenge of an average credit rating of “Fair,” well below the national average.

Top 6 Options for Debt Relief Programs in Kansas City, Missouri

Here are the most effective debt relief options for Kansas City, MO residents:

1. Credit Counseling

One step we recommend for consumers who need help with their finances is working with a certified credit counselor. Credit counseling programs offer numerous benefits including, financial education courses and a personalized review of your credit score and history.

Many nonprofit credit counseling organizations provide free or low-cost services to consumers facing financial hardship, offering advice on budgeting and managing debt effectively. Credit counselors can also guide you toward the best options for paying off debt and give you strategies to stay debt-free for good.

2. Debt Management Programs

A debt management program benefits consumers who need help organizing multiple repayments each month. First, you’ll set up a debt management plan (DMP) with a private or nonprofit organization to determine what you can pay your creditors monthly.

Once you and your creditors agree to the plan, you’ll start sending payments to the organization overseeing your DMP. The organization will then send your payments to creditors until you’ve paid off your debts. Some DMPs will help you to lower your interest rates or waive late fees.

3. Debt Settlement

Debt settlement is often the most effective way to eliminate significant debts in a much shorter time frame than you would, otherwise. We see consumers struggling with thousands of dollars in unpaid credit cards or medical bills choose this strategy to reduce their overall balance and start making affordable payments to end their debt.

Working with a reputable debt settlement company can make the process easier than negotiating with creditors on your own. Representatives from these organizations speak with creditors on your behalf to reduce the amount you need to pay back.

Your creditor agrees to receive a lump-sum payment, in return for having any remaining amount waived or forgiven. After you build up enough money in a savings account to meet the agreed-upon amount, the debt settlement company pays your creditors and your debt is charged off, leaving you with a fresh start financially.

4. Debt Consolidation Loans

For consumers with strong credit scores, a debt consolidation loan can help you reorganize your debts into a single payment each month. Once you secure a loan big enough to cover your current debts, you’ll pay them off with the loan proceeds, leaving you with one monthly bill instead of several.

We recommend this method only if you can get a loan at a low enough interest rate to make the new payments a money-saving solution. If not, you may end up paying more in interest for your debt over the course of the consolidation loan, because it will typically have a longer repayment term.

5. Debt Forgiveness

If you fit into a low-income bracket or have worked for years in public service, you may find relief by pursuing debt forgiveness. Qualifying for a debt forgiveness program typically involves proving your financial hardship and meeting certain requirements based on your job, income, and other factors.

Most forgiveness programs are offered through the federal government or issued through state relief programs. Missouri residents who’ve worked as government employees should consider learning more about the Public Service Loan Forgiveness program.

6. Bankruptcy

While consumers often think of bankruptcy as a quick way out of debt, we don’t recommend it unless all other forms of debt relief have proven ineffective. Bankruptcy is costly in the damage it does to your credit score (for up to 10 years) and the legal costs of using the court system to eliminate debts.

Individuals typically pursue either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 allows consumers to sell off assets to repay as much debt as possible, with the court intervening to forgive any additional debts. In Chapter 13, consumers follow a court-approved payment plan to fulfill their obligations over a three to five-year period.

Before pursuing bankruptcy, consider speaking with an experienced attorney at a reputable law firm for legal advice on how to proceed.

TurboDebt Helps Kansas City, MO Residents Get Out of Debt

Over the years, we’ve helped many KC clients overcome big balances and start living debt-free, saving them an average of 55% of their total debt before fees. In 2023 alone, TurboDebt enrolled an average client debt of $20,973 from Kansas City, MO residents. Our total enrolled debt for the city reached nearly $3 million that same year.

TurboDebt provides trusted debt relief across the state of Missouri, helping clients get a new start. We offer debt relief services for the following unsecured debts:

  • Credit card debt
  • Personal loans
  • Healthcare bills
  • Some student loans

Signs You May Need Debt Relief

Sometimes it’s hard to step back and assess your financial needs. Taking a moment to think about what’s making it hard to pay down your debts is the first step toward ending big balances. Here are some key indicators that prove it’s time to consider debt relief:

  • Carrying a balance on your credit card each month
  • Paying high interest rates (more than 23% APR) on credit card debt balances
  • Maintaining a high debt-to-income (DTI) ratio
  • Using predatory payday loans to cover expenses
  • Taking frequent calls from debt collectors 
  • Lacking an emergency fund with at least 3-6 months of expenses saved
  • Feeling stressed or anxious over debt

If one or more of these situations sounds like what you’re going through, consider taking a first step toward debt relief with a free initial consultation from TurboDebt. Our team is dedicated to helping you find the best solution to quickly and efficiently end your debt.

What About Debt Collections and the Statute of Limitations?

According to Brad Reichert, the founder and managing director of Reichert Asset Management LLC, Missouri has some of the longest periods where it’s possible for a creditor to pursue legal action to collect a debt (statute of limitations).

“For the collection of a debt with a contract in writing, the statute is 10 years, and five years for verbal or oral contracts,” explains Reichert. “For court-ordered judgments, it’s also 10 years,” he says.

Reichert also adds that “after the statute of limitations time period has passed, a lender can no longer sue to collect a debt, unless a borrower either makes a payment on a debt or otherwise acknowledges they still owe the debt, at which point, the statute of limitations clock starts all over again.”

Why Is Debt Relief Important in Kansas City, MO?

Known for barbecue, baseball, and jazz, this city on the Missouri River has it all. But like millions of Americans facing some of the highest inflation and cost of living increases in decades, Kansas City, MO residents struggle to meet monthly expenses, leading them into debt.

Once you get caught in a cycle of debt, it can seem impossible to get out. Carrying a balance on your credit card can quickly lead to more interest fees that increase what you owe, making it difficult to catch up on payments. Kansas City, MO residents owe an average credit card debt of $4,437, making debt relief an essential option for consumers across the Show Me state.

With an average credit score of 659, KC consumers fall into the “Fair” category, indicating many residents find it difficult to secure loans with lower interest rates. Other debts, like sudden and higher-than-expected medical bills, can wreak havoc on your budget. Many KC residents are forced to deal with debt collectors as they struggle to find the funds to pay back these kinds of debts.

The good news is, residents can seek the help they need through Kansas City debt relief programs. Read on to discover the best solutions to overcome large debt balances and get back on track to live debt-free.

Why Choose TurboDebt’s Debt Relief Program?

Don’t let struggles with debt overshadow your life. You can find a solution to start paying down debt and eliminating the high cost of interest and other ongoing account fees.

At TurboDebt, we help consumers overcome the burden of huge credit card debt balances, unpaid medical bills, and other unsecured personal debts. It only takes a few minutes to get started by answering some questions about your financial situation. Once we know more about your needs, representatives from our team use their expertise to match you with the best debt relief program.

Here’s why we think you’d benefit from working with the TurboDebt team:

  • Our clients save an average of 46% of their total debt before fees.
  • You won’t pay any fees until your accounts are settled. 
  • TurboDebt works with over 10,000 creditors to help you end your debts. 
  • We don’t charge late fees if you fall behind on a payment
  • Clients pay off debt faster, often in 24-48 months through our program.
  • You’ll get highly-rated service backed by over 12,000 positive TurboDebt reviews.

Find out why over 500,000 clients have chosen TurboDebt for effective debt relief services and consumer resources to help them stay debt-free. Contact us today for a free consultation and start your journey toward financial freedom!