Turbo Takeaways

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 in the past five years, making it a destination for individuals and families looking for 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.

Your Options To Get Out of Debt in South Carolina

Here are the top options for debt relief in South Carolina:

Credit Counseling

Credit counseling is an effective way to start understanding your options for debt relief.

How It Works in South Carolina
Certified credit counselors offer advice and financial education for consumers struggling with debt. South Carolina residents can work with a local credit counselor or complete online sessions with a professional nearby or from another area.
Pros
Credit counseling provides expert advice and helps you create a plan to manage money and tackle debts.
Cons
You’ll have to take the initiative to enroll in a debt management plan (DMP) or debt relief program after seeking the advice of a credit counselor.
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.
Resources
Two non-profit organizations, the National Foundation for Credit Counseling and the Financial Counseling Association of America, offer consumer financial resources and credit counseling services.

Debt Management

Many credit counseling organizations also offer DMPs to help consumers handle debt repayments.

How It Works in South Carolina
Consumers in South Carolina 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 DMP and help you enroll each account.
Pros
Creates a single monthly payment, making it easier to manage bills
Cons
Typically requires you to close out most, if not all, credit card accounts
Cost
Programs vary in cost but typically charge a startup fee up to $40 along with a monthly fee for each account enrolled in the plan (typically $20-30).
Stats
— In 2024, Palmetto State residents carried an average of $93,818 in consumer debt.
Resources
Find out more about debt management plans to determine if they’re the right debt relief solution for you.

Debt Consolidation

Consolidating debt is one way to restructure payments to reduce or defer interest.

How It Works in South Carolina
Palmetto State residents can choose from two options to consolidate debt. One choice is to take out a 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 debts.
Pros
Taking out a consolidation loan can reduce the amount you pay in interest if you can lock in a low enough rate, while balance transfer cards allow you to take a break from interest payments.
Cons
One drawback of a consolidation loan is that it 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.
Cost
A consolidation loan may come with an origination fee, while a balance transfer credit card can include a small transfer fee.
Stats
— Higher credit scores help consumers secure consolidation loans at better rates.
— South Carolina’s average credit score is 692, falling into the “Good” category.
Resources
Learn about how debt consolidation programs aid consumers.

Debt Settlement

South Carolinians struggling with heavy credit card debts often reduce what they owe to lenders using this option.

How It Works in South Carolina
South Carolinians with unsecured debts like personal loans and credit cards can opt to settle debts by negotiating with creditors. Using a debt settlement organization to arrange a lump-sum payment can result in savings up to 50% of your original balance (before fees).
Pros
Typically helps you pay off debt faster and for less than you owe
Cons
Negatively impacts your credit score for a time
Cost
Reputable debt settlement companies won’t collect any fees upfront, but charge up to 25% of your total enrolled debt once you settle.
Stats
— Debt settlement is often most effective for paying off large credit card balances
—  The average credit card debt among South Carolina residents is $7,002.
Resources
Discover more about debt settlement programs and what they mean for consumers struggling with significant balances.

Bankruptcy

Bankruptcy is a way to legally resolve debts by either selling off assets or restructuring payments under the direction of the court.

How It Works in South Carolina
South Carolina residents can file for either Chapter 7 or Chapter 13 bankruptcy as a last resort to relieve debts.
Pros
Bankruptcy gives debtors a reset after legal proceedings and court-ordered repayments.
Cons
Completing bankruptcy can negatively impact your credit score for up to ten years.
Cost
Bankruptcy involves filing fees, possible court costs, and legal payments if you work with a bankruptcy attorney.
Stats
— A total of 4,651 South Carolina residents filed for bankruptcy in 2024.
— This represented a near 15% increase from the previous calendar year.
Resources
Read more about bankruptcy’s effect on consumer finances.

What You Need To Know About Debt in the State of South Carolina

Statute of Limitations on Debt Collections in South Carolina

The Palmetto State’s Statute of Limitations protects consumers whenever debts become past due and go to collections. These statutes set legal guidelines for debt collectors and creditors when debtors fail to pay. Although an unpaid debt doesn’t disappear, creditors can no longer seek a lawsuit with debtors once the stipulated time period has passed.

Here’s a look at the amount of time granted for creditors to pursue legal action to collect a debt:

Type of Debt Agreement Length of Time Collectible
Written Contracts6 years
Promissory Notes (Mortgages)6 years
Open-Ended Accounts (Credit Cards and Lines of Credit)6 years
Oral Agreements6 years
Medical Debt3 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:

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:

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.

How TurboDebt Helped South Carolina Residents With Debt Relief

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 50% of their total debt (before fees). Get started with a free consultation today to see if you qualify!