Turbo Takeaways
- South Carolina residents face mounting debt from credit cards, loans, and medical bills that strain monthly budgets.
- Debt relief options provide structured ways to reduce balances and regain financial control without starting over.
- With guidance from trusted programs, Palmetto State residents can create a clear path toward lasting financial confidence.
Your Options To Get Out of Debt in South Carolina
With low-country charm and irresistible Southern style, South Carolina is rich with reasons to call the Palmetto State home. South Carolina’s population has grown over the past five years, making it a destination for individuals and families seeking opportunities from Columbia to Charleston.
However, the Palmetto State’s population isn’t all that’s grown. Many residents live with increasing consumer debt, making it difficult to meet monthly expenses. With a median household income well below the national rate, and nearly 14% of the population living in poverty, South Carolinians need a way to escape economic hardship.
Debt relief in South Carolina involves several options to reduce and pay off unsecured debts, such as credit card balances and personal loans. Keep reading to discover how South Carolinians can make a personalized plan to get out of debt and on the road to financial success.
Credit Counseling
Pros
- Provides expert guidance to understand your debt options
- Offers free or low-cost financial education and budgeting help
- Helps you create a plan to manage money and tackle debts
Cons
- Doesn’t directly reduce debt unless paired with a management plan
- Requires initiative and consistency from the borrower to apply advice
- Some agencies charge modest monthly fees for extended counseling services
How It Works
Credit counseling is an effective way to start understanding your options for debt relief and to develop a personalized plan that fits your financial situation.
Certified credit counseling advisors offer advice and financial education to consumers struggling with debt. South Carolina residents can work with a local credit counselor or complete online sessions with a professional from a nearby area or another location.
- Cost
Many credit counseling organizations offer low or no-cost services based on your income or financial needs. - Stats
Over 30,000 credit counselors work with clients across the U.S. to assist individuals in managing their debt. - Resources
Non-profit organizations, such as the Financial Counseling Association of America, offer consumer financial resources and credit counseling services.
Debt Management
Pros
- Creates a single monthly payment, making it easier to manage bills
- Reduces interest rates and waives late fees when maintained properly
- Helps improve credit over time through consistent on-time payments
Cons
- Typically requires you to close out most, if not all, credit card accounts
- Missed payments can void the benefits negotiated with creditors
- Monthly service fees apply for account administration
How It Works
Many credit counseling organizations also offer debt management to help consumers handle debt repayments.
South Carolinians can reorganize debts into a simplified monthly payment plan with the help of a certified credit counselor. Once they understand your financial needs, the credit counselor can suggest an effective Debt Management Plan (DMP) and help you enroll each account in it.
- Cost
Programs vary in cost but typically charge a startup fee of up to $40, along with a monthly fee per enrolled account (typically $20-30). - Stats
In 2024, residents of the Palmetto State carried an average of $93,818 in consumer debt, which includes credit card balances, auto loans, student loans, and personal loans. - Resources
Find out more about debt management programs to determine if they’re the right debt relief solution for you.
Debt Consolidation
Pros
- Simplifies repayment by merging debts under one loan or credit line
- A consolidation loan can reduce the amount you pay in interest if you can lock in a low enough rate
- Balance transfer cards allow you to take a break from interest payments
Cons
- Approval often depends on a strong credit score or co-signer
- Consolidation loans may take longer to pay off
- With balance transfer cards, consumers only get a short time to pay off the new account before lenders start charging high interest fees
How It Works
Debt consolidation is one way to restructure payments to reduce or defer interest. It involves combining multiple debts into a single payment plan, often resulting in lower interest rates and simplified management of obligations.
Palmetto State residents can choose from two options to consolidate debt. One choice is to take out a new debt consolidation loan big enough to cover all current debts. The second option is to open a zero-interest balance transfer credit card to pay down moderate credit card balances.
- Cost
A debt consolidation loan may come with an origination fee, while a 0% balance transfer credit card can include a small transfer fee. - Stats
South Carolina’s average credit score is 692, falling into the “Good” category. Higher credit scores help consumers secure consolidation loans at better rates. - Resources
Discover the top debt consolidation loans and how they can assist consumers in managing their debts.
Debt Settlement
Pros
- Negotiates with creditors to pay less than what’s owed
- Can resolve debt faster than paying off full balances
- Offers significant savings for consumers with high unsecured debt
Cons
- Negatively impacts your credit score for a time
- Not all creditors agree to settlements
- Settled debts may be taxable as forgiven income
How It Works
Consumers struggling with mounting unsecured debt, such as credit card bills and personal loans, typically reduce what they owe to lenders using this option.
South Carolinians can opt to settle debts by negotiating with creditors on their own or through a debt settlement organization. Using a settlement service to arrange a lump-sum payment can result in savings of up to 50% of your original balance (before fees).
- Cost
Legitimate debt settlement companies won’t collect any fees upfront, but charge up to 25% of your total enrolled debt once you settle. - Stats
The average credit card debt among SC residents is $7,002. Debt settlement is often most effective for paying off large credit card balances. - Resources
Discover more about debt settlement and what its relief programs mean for consumers struggling with significant balances.
Bankruptcy
Pros
- Legally eliminates or restructures debts through court protection
- Stops collection calls, wage garnishment, and most legal actions
- Provides a chance for a financial reset when other options fail
Cons
- Completing bankruptcy can negatively impact your credit score for up to ten years
- May require liquidation of assets depending on filing type
- Legal and filing fees can make the process costly upfront
How It Works
Bankruptcy is a way to legally resolve debts by either selling assets or restructuring payments under court supervision.
South Carolina residents typically file for either Chapter 7 or Chapter 13 bankruptcy as a last resort to relieve debts. It is highly recommended to consult a bankruptcy attorney to determine the best course of action.
- Cost
Bankruptcy involves filing fees, possible court costs, and legal payments if you work with a bankruptcy lawyer. - Stats
A total of 4,651 South Carolina residents filed for bankruptcy (PDF) in 2024. This represented a near 15% increase from the previous calendar year. - Resources
Learn more about how life changes after filing for bankruptcy and how it affects your finances.
What You Need To Know About Debt in SC
The Palmetto State’s statute of limitations protects consumers when debts become past due and are sent to collections. These statutes set legal guidelines for debt collectors and creditors when debtors fail to pay.
Statute of Limitations on Debt Collections in South Carolina
Although an unpaid debt doesn’t disappear, creditors can no longer pursue legal action against debtors once the statute of limitations threshold has passed.
Here’s a look at the statute of limitations on debt in the state of South Carolina:
| Type of Debt Agreement | Length of Time Collectible |
|---|---|
| Written Contracts | 6 years |
| Promissory Notes (Mortgages) | 6 years |
| Open-Ended Accounts (Credit Cards and Lines of Credit) | 6 years |
| Oral Agreements | 6 years |
| Medical Debt | 3 years |
Resources for Financial Assistance in South Carolina
Overcoming debt can seem like an impossible task without some help to get started. Although South Carolina stimulus checks are no longer issued, Palmetto State residents needing economic assistance can benefit from several programs after applying and meeting specific qualifications.
Here are the top financial assistance programs in South Carolina:
- Temporary Assistance for Needy Families (TANF): South Carolina administers the federal TANF program, providing cash benefits for qualifying families.
- Supplemental Nutrition Assistance Program (SNAP): Formerly known as “Food Stamps,” SNAP is another federal program offering South Carolina residents a way to purchase nutritious food when facing economic hardship.
- Healthy Connections: South Carolina’s Medicaid program, Healthy Connections, provides medical benefits and may cover prescription drugs, exams, and hospital stays for those in need of assistance.
- Women, Infants, and Children (WIC): The federal WIC program, offered to residents of the Palmetto State, offers support and resources for pregnant mothers and mothers with young children.
- Child Care Scholarship Program: Through this program, low-income families receive financial help to send their children to child care facilities while they work or attend school.
- Low-Income Home Energy Assistance Program (LIHEAP): South Carolina oversees this federal program that assists residents with energy costs.
Student Loan Forgiveness in South Carolina
While South Carolina doesn’t offer a sweeping loan forgiveness program for all residents with student debt, it does offer specific programs for residents working in certain professions.
The Palmetto State offers the following programs for student loan forgiveness:
- BOLD™ Career Pathways Nursing Faculty Loan Program: The new BOLD program, which stands for Better Outcomes, Less Debt, offers up to $90,000 in tuition remittance once participants meet their required commitments.
- SC Teacher Loan Program: The SC Teacher Loan Program allows qualified teachers who work in certain high-need locations or subject areas to cancel portions of their student loan debt.
- South Carolina Behavioral Health Loan Repayment Program: This program aims to overcome gaps in mental health care by repaying loans up to $25,000 for qualified professionals working in high-needs areas.
- Student Loan Forgiveness for Prosecutors: State and federal prosecutors and public defenders who commit to working in their positions for a minimum of three years can receive coverage for up to $60,000 in student loans.
South Carolinians Can Get Professional Help Paying Off Debt
Whatever your debt struggles in the Palmetto State, TurboDebt® is here to help. Our team provides expert assistance to match you with the best debt relief plan.
With nearly 20,000 positive reviews across Trustpilot and Google, we’ve proven ourselves a trusted partner for those ready to eliminate big balances and regain their financial stability.
Pay off debt faster for less than what you owe by enrolling in our customized debt relief program. We’ve already helped South Carolina residents like you save up to 55% of their total debt (before fees). Get started with a free consultation today to see if you qualify!