Are you struggling with too many bills in Kentucky (KY)? Are you using credit cards to meet your daily expenses? Are your savings being depleted to pay off current bills? If yes, then it's time you take steps to get your debt under control. Depending upon your financial situation, you should go for Kentucky debt consolidation or settlement to pay off your bills and get your finances back on track.

Kentucky debt consolidation - What is it all about?

Kentucky debt consolidation enables you to combine bill payments on several accounts into one low payment a month. There are 2 ways you can consolidate bills in KY. Below is a summary of how each option works:

Kentucky consolidation program:

This is where you contact a consolidation company to get help negotiating with your creditors and reduce your interest rates, so as to make your payments affordable. Thus, you can avoid falling behind on your bills and get rid of frequent collection calls or letters sent by your creditors.

Apart from negotiating low interest rates, consolidation companies work with creditors to reduce or eliminate late payment fees and over-limit charges on your credit card (cc) and other loans. Learn more about how a consolidation program can work for you.

Kentucky consolidation loan:

This is usually an unsecured consolidation loan available from banks or lenders at a lower interest rate, when compared to what you've been paying. With this low interest loan, you can pay back the outstanding balances on your credit accounts.

However, with a consolidation loan, you won't get out of debt completely. You'll have to make a small repayment each month towards your consolidation loan, until you pay down the loan completely. Learn more...

When should you go for Kentucky consolidation?

You should go for consolidation under the following conditions:

  • You've taken out a cash advance on credit cards to pay the minimum on another card.
  • You're borrowing money from co-workers, friends, etc.
  • You're using credit cards as a necessity, not for your convenience.
  • You're opening cc accounts after having maxed out existing cards.
  • Collection agencies are harassing you for payments.
State of Kentucky (KY)
map of Kentucky state in USA

Avg credit card debt: $4,872
Delinquency rate on (credit card): 1.68%

Mortgage debt: $122,579
Delinquency rate on (Mortgage): 2.24%

Auto loan debt: $16,956
Delinquency rate on (Auto loan): 1.51%

Unsecured personal loan debt: $10,862
Delinquency rate on
(Unsecured personal loan): 3.25%

Payday loan laws >>

What are the advantages of Kentucky consolidation?

  • You make one monthly payment instead of paying several bills every month.
  • Interest rates on your bills are lowered, hence monthly payments are low.
  • You can have late fees and over-limit charges reduced or eliminated.
  • Avoid being harassed by creditors or collection agencies.
For further details, check out this information on the benefits of consolidation.

Tips to a successful consolidation program in Kentucky

Check these 3 tips to make sure that you get the maximum benefit with the help of a consolidation program or loan.


  • 1 Use cash or checks to pay for purchases: It is better to avoid using credit/store cards for purchasing items. Pay with checks or cash when it comes to purchasing items or paying everyday expenses.
  • 2 Avoid taking cash advances on credit cards: When you're consolidating your bills, you should not take out cash advances, that is, you should avoid borrowing cash against the current balance on your cc account. Frequent cash advances may lead you into further debt.
  • 3 Cut down on unnecessary expenses: Refrain from making unnecessary expenditures so that you have enough cash to make your bill payments every month.

Kentucky debt settlement program - Is it a good option?

There are a number of companies that offer Kentucky debt settlement programs. Under these programs, you make a low monthly payment to the settlement company. This amount is deposited in an account set up by the company. The money accumulates to a lump sum; then the Kentucky debt settlement company starts negotiating with creditors to reduce your outstanding balance. The balance is then paid off with the cash you've accumulated. As soon as one account is paid off, the company starts negotiating with the other creditors. One by one, all your bills are settled for less than the amount you owe.


Before you decide upon consolidation vs settlement, make sure you know how each option works and which is appropriate for your situation. Choosing the right option will help you manage your debts better and give you relief faster.

Case study

Scenario Well, This was my 3rd dispute with Equifax. My credit report was completed on 30th June 2016. After I had it printed, there was no rectification, as I requested. Later that week, my credit score dropped 123 points at no fault of mine, and my credit report isn't showing the dispute completion date on the Equifax site. I don't have any inquiries and have disputed 1 charge off plus 4 late fees. Please help.
Solution Write to Equifax explaining your case with valid proofs. Ask them to take all the negative tradelines down. If they decline your request, send a written complaint to the Consumer Financial Protection Bureau or the Federal Trade Commission citing all the relevant documents. Work with an attorney and sue Equifax for violating your rights to a fair and accurate reporting of your credit information based on Fair Credit Reporting Act. There's a Statute of Limitations to file an FCRA complain. It should be done within 2 years from the date when you've discovered the violation or five years after the violation.

How much
you can save
in Kentucky

FAQ on Kentucky debt consolidation

I've taken out 3 internet pdls in Kentucky. I tried to pay off the debts in full. But the pdl lenders were interested in withdrawing money only to cover the interest. To stop this, I had to close my bank accounts. Thus, the pdl lenders didn't get their money. How do I tackle the bills? Can Kentucky debt consolidation help?
Ans: Payday loans are legal in Kentucky. If you're having trouble with your payday loans, Kentucky debt consolidation may be able to help, depending on your situation. To find out more, contact a reputable debt solutions firm and get a free no-obligation counseling session.
I have unpaid credit cards, medical bills, as well as student loans. How do I get rid of these? Can consolidation programs help me get rid of student loans?
Ans: Consolidation programs can help you clear debts on credit cards and medical bills but not your student loans. So, in your situation, you need to take out a Kentucky debt consolidation loan for paying off your bills (including student loans) with a lump sum payment. However, you should keep making timely payments on the consolidation loan so as to avoid being in default.
I have 5 credit cards to be paid off. I've exceeded the limit on 2 of these accounts. Can the card issuers sue me? What should I do? I'm in Kentucky.
Ans: The card issuers may sue you for not paying off the balance you owe. It depends upon how much you owe and whether the Statute of Limitations (SOL) has expired (15 years in Kentucky). To avoid being sued, you should discuss lowering your interest rates with your cc issuers to make your payments affordable.

If you don't think you can negotiate with your creditors, get enrolled in a Kentucky debt consolidation program. The consultants at the consolidation company will communicate with creditors, so that they may lower the interest rates on your bills. Learn more...