South Carolina Debt Relief
19 MIN READ
Published April 11, 2023 | Updated November 10, 2023
In a Nutshell
South Carolina is regarded as one of the most business-friendly states. The tax regimes, a skilled labor force, ease of accessibility, and low cost of living have attracted businesses to set up camp in the state. Retirees might also find the state enjoyable since there’s no social security tax.
However, residents tell a different story as they’re buried deep in debt due to income levels that have failed to keep up with the increasing inflation and consumer demands. As such, South Carolinians require debt relief solutions to help them live debt-free.
Fortunately, we’re well aware of how to help achieve debt relief. We assisted over 2,000 South Carolina residents who were struggling with credit card debt, medical bills, or other financial obligations last year. With a free consultation, we can help you understand the pros and cons of different relief options and provide you with the best recommendation for your unique situation.
Get in touch today, or read on to learn more about South Carolina debt relief options, key statistics, and other financial hardship resources for those living in the state.
South Carolina: An Economic Picture
South Carolina’s Gross State Product grew by 2.0% to $223.9 billion in 2022, ranking the state’s growth rate 13th countrywide. The unemployment rates in the state also maintained an average of 3.4% throughout the year. Leading employment sectors in the state include manufacturing, real estate, rental, leasing, and retail trade.
How Does Debt Relief Work in South Carolina?
South Carolina debt relief works by assisting debtors to pay off their loans with minimal constraints on their budgets. Debtors get relief from their secured debt, unsecured debt, and personal loans by negotiating for a debt reduction, cancellation, or extended repayment period.
However, you must access debt relief options from a reputable debt management company to avoid being scammed. The debt relief company will match you to the appropriate debt relief option depending on your creditworthiness, loan type, and DTI ratio.
South Carolina Debt and Finance Statistics
Understanding the current state of debt and finance in South Carolina can help individuals, families, and business owners make sound financial decisions. Read on to learn more facts and figures about South Carolina's financial state:
Average Consumer Debt
As the nation experienced a 7% increase in consumer debt in 2022, South Carolina’s average consumer debt also increased by 3.8% to $87,751. Such increases can be attributed to high inflation, increased consumer demand, and low unemployment levels encouraging consumer spending.
Credit Card Debt
The average credit card debt for U.S. residents increased by 13.2% from 2021 to 2022, signaling a rise in consumer spending trends due to inflation and rising costs for food, housing, utilities, and other necessities.
With millions of Americans owing credit card debt, outstanding credit card balances have also played a crucial role in the consumer spending of the Palmetto State’s residents.
South Carolina residents saw an average credit card debt of $5,535 in 2022, leaving many trapped in endless fees and accumulating interest payments, especially those in Gen-Z. Alternatively, residents can seek debt relief options from organizations like TurboDebt to start living a debt-free life.
Auto Loan Debt
Vehicles are often the lifeline of South Carolina’s working community, and 94.1% of households own at least one car.
Most of these households acquire their cars through financing options resulting in an average auto loan balance of $21,005 in the state.
However, repaying these loans is a challenge as car interest rates continue to increase. Paired with the cost of fueling and maintaining a car, paying off auto loan debt quickly becomes a challenge.
South Carolina homeowners pay a median monthly mortgage of $1,329. The median home value is $181,800 against the national median home value of $244,900, highlighting the state's affordable housing.
Home sales in the southern states continue to rise, raising values for homeowners. Metropolitan areas like Charleston and Greenville boast high median home values of $369,500, and $349,400, with Columbia coming in a bit more modest at $193,100.
The pandemic left homeowners struggling to pay mortgages amidst high unemployment and increased delinquency rates throughout the country. Such financial realities have led residents of South Carolina to search for debt relief options that support a debt-free lifestyle.
Student Loan Debt
On average, residents of the Palmetto State owe a student debt loan of $38,414. In South Carolina, 29.8% of residents have attended college, and of those graduates, 14.3% of them owe a total student debt loan of $28.1 billion.
South Carolina is among the states with the highest debt-to-income ratio at 1.796. Debt-to-income (DTI) ratios are used to calculate household debt, and such a high value signifies that consumers in the state are spending more than they earn. Since the state's DTI ratio sits higher than many other states, it's a good indication that individuals and families across South Carolina are in need of debt relief solutions.
Due to high debt burdens, some South Carolina residents have resorted to filing for bankruptcy to find financial freedom.
In 2022, the total number of bankruptcy cases filed in the state was 3,619. Chapter 13 bankruptcy cases were the highest at 2,406, followed by Chapter 7 bankruptcy cases at 1,194, and 18 Chapter 11 bankruptcy cases.
Average Income and Employment
The high unemployment rates at the peak of the pandemic resulted in an increased debt burden for many families across the state. This forced some consumers to default on their monthly loan payments, forcing creditors to push debts into collections.
Even as unemployment rates dropped to pre-pandemic levels, skyrocketing inflation continues to strain incomes. As of June 2023, South Carolina's unemployment sat at 3.1%.
What’s more, the state’s income levels have failed to keep up with rising inflation costs, and consumers remain trapped in debt. The median household income in South Carolina is $58,234, while the per capita income is $32,823, and the average income is $81,142.
South Carolina is among the states with the lowest credit score nationwide. With a FICO score of 696, this puts the average Palmetto State resident below the "good" range, making it harder to secure loans with lower interest rates or open new accounts.
Cyber scammers fraud people for financial gains, and they’ve cost the nation $10.2 billion in identity theft losses in 2022. The leading forms of identity theft are credit card fraud, government documents or benefits fraud, and loan or lease fraud.
The identity theft wave hasn’t left South Carolinians behind, as 1,149 out of 100,000 residents experienced some form of identity theft.
Consumers aged 30- 39 are the ones most likely to suffer from identity theft. In total, 59,177 reports of identity theft were reported by South Carolina residents, ranking the state 11th in the nation.
Banking and Tax Info
South Carolina’s banking sector has 46 financial institutions with total assets worth $54,440 million from $49,370 million in Q4 of 2021. The biggest beneficiary of loans from financial institutions in the state is the real estate sector. Generally, the past-due rate on loans is 0.50%.
The biggest financial market in the state is in Charlotte-Concord-Gastonia, with total deposits amounting to $336,500 million.
South Carolina has a top individual tax rate of 6.50% and a state and local tax burden of 8.9%. The state’s business index is 31st, with a flat corporate income tax rate of 5%. It has a state sales tax rate of 6.00% and an average local sales tax rate of 1.43%.
The state’s property tax rate is among the lowest countrywide at 0.57% of the owner’s occupied house value. Social security isn’t taxed, making it friendly for retirees to live in the state.
How TurboDebt Helped South Carolina with Relief in 2022
TurboDebt has worked to bring our debt relief expertise to 2,375 South Carolinians in 2022. Out of these, 878 clients enrolled in our debt relief program, with an average debt of $22,169. The total enrolled debt for the state reached $19,464,066. Before charging service fees, we were able to save our customers an average of 55% of their total enrolled debt.
Our team takes pride in helping you alleviate your financial burdens through our debt relief solutions. Get in touch today to see how much we can save you.
Top Types of Debt to Get Relief from in South Carolina
If you have one of the following top types of debt, consider enrolling in one of TurboDebt’s debt relief solutions to work towards financial stability.
Credit Card Debt
Credit card delinquency at 60 days increased to over 1% in 2022, nearly doubling from .58% in the previous year. The increase in past-due rates can be attributed to increased consumer spending as income levels fail to keep up with the rising inflation.
This has resulted in residents of South Carolina owing credit card debt as consumer credit utilization rates increase in an attempt to meet consumer demands.
TurboDebt is committed to helping you get relief from your credit card debt. We’ll guide you in choosing a repayment plan that suits your debt-to-income ratio, making the repayment process simple and effective.
Since South Carolina is an equitable distribution state, you may acquire some percentage of marital debt once you divorce your spouse. Factors that determine the percentage of marital debt to be inherited include the marriage duration, any marital misconduct, income levels, child custody agreements, and your influence in acquiring debt.
Manage your divorce debt through options such as credit counseling, debt settlement, or other management programs. Find a reputable organization like TurboDebt to provide convenient debt relief options for divorcees.
South Carolina’s low-income tax rates and tax incentives, skilled labor force, and low cost of living attract many businesses to set up shop in the state.
As businesses continue to grow, they must have sufficient capital to cover their expansion costs or risk becoming indebted from business expenses. However, access to capital in the state is can be a major challenge, making businesses fall into a pit of high-interest predatory loans.
When you couple high-interest rates with the fact that you may face unlimited legal liabilities in case of a lawsuit, accessing debt relief solutions isn’t an option but a necessity for you and your business’s well-being. At TurboDebt, we pride ourselves on helping business owners better manage their business debt through our debt relief program.
South Carolina is one of five states with the most medical bills in collections. With up to 25% of the bills in collections related to medical debt, many South Carolina residents feel the pressure of paying off outstanding balances to hospitals, medical care facilities, or doctor's offices.
Debt management programs using debt settlement are an effective option to help you settle your medical bills. These programs work by negotiating reduced interest rates and lower monthly repayments to make clearing your medical debt possible.
Let TurboDebt help you alleviate medical debt through our debt settlement programs, strategic planning, and advising services.
As much as the state of South Carolina has a low cost of living, homeowner debt from mortgages has led many residents into a pitfall of debt. Thankfully, if you’re dealing with homeowner or mortgage-related debt and are in need of a way to pay it down, you have plenty of options within the state.
Since South Carolina doesn’t charge a social security tax, it attracts many retirees to the state. The state’s cost of living is also favorable to retirees. Despite these advantages, some retired residents still overspend, making them fall into retirement debt.
If you haven't saved enough for retirement, living on a fixed income can make any amount of debt difficult to handle. GOBankingRates estimates South Carolina retirees need to save over $600,000 to retire comfortably in the state.
Let TurboDebt help you manage your debt, even on a fixed income. We'll work with you to find the right debt relief options. Contact us today for a free consultation.
South Carolina debt relief options
Debt relief companies in South Carolina offer the following top debt relief options to residents:
Credit counseling is done through a credit counseling agency. Credit counseling agents assist you in clearing debts by holding debt negotiations with your creditors to lower interest rates or waive late penalty payments. They also choose a debt management plan that fits your debt-to-income ratio.
Borrowers can benefit from credit counseling by accessing their credit reports, attaining financial education through free workshops, understanding money and debt management, and learning how to budget their income. These benefits assist borrowers in avoiding falling into debt pitfalls again.
Debt Management Programs
Debt management programs are offered through private or nonprofit credit counseling agencies. Typically used for unsecured debt like medical bills, credit card debt, and divorce debt, residents of South Carolina can find assistance through this debt relief solution, making affordable monthly payments during a fixed repayment period.
To make the program effective, you'll need to commit to creating a savings account with the organization and avoid accumulating more debt. The savings account will be used to make monthly payments to your lenders, thus simplifying your debt payments with one monthly payment. It usually takes 3 to 5 years to complete a debt management program through a credit counseling agency.
Debt Consolidation Loans
Debt consolidation loans are often favored by creditors since your likelihood of repaying your loan balances is high. The process involved in debt consolidation includes rolling your existing loans into one and applying for a loan large enough to clear existing debts.
The repayment process is done with a single lump sum payment, leaving you with one loan to clear. Residents benefit from the debt management plan by acquiring a lower-interest loan with small monthly payments compared to previous loans.
However, you must be careful to avoid high-interest fees due to extended repayment periods when using debt consolidation loans. Debt consolidation can be accomplished by applying for personal loans, home equity loans, and balance-transfer credit cards.
Debt settlement plans involve negotiating with your lenders to accept a partial loan payment and forgiving the rest of the debt balance. This solution is ideal for residents in a tough financial situation where they can’t afford to clear their debts.
Creditors are more willing to accept debt settlement if you make a lump sum payment that’s more than half the amount owed. Using an organization to negotiate your debt settlement can simplify the process, helping you eliminate your outstanding balances in as little as two years. Find a reputable debt settlement company by checking online reviews or looking up accreditations through the state's business bureau.
Many borrowers tend to shy away from filing for bankruptcy as a debt relief option because its negative impact on credit reports lasts for 7 to 10 years. However, you may get a fresh start from debt depending on the type of bankruptcy you file. Bankruptcy filings for individuals and business owners include:
Chapter 7: Chapter 7 bankruptcy liquidates your nonexempt properties to pay off unsecured debt. Debt balances that arise after the repayment plan are written off, and you get a fresh start.
Chapter 11: These bankruptcy filings help businesses get out of debt by restructuring their repayment plan without affecting day-to-day business operations.
Chapter 13: Chapter 13 bankruptcies allow individuals and businesses buried in debt to clear their debt burden since they have a consistent monthly income. Because of the nature of Chapter 13, nonexempt properties and assets aren’t liquidated as long as borrowers follow the repayment plan created by the court.
Debt forgiveness involves discharging or canceling part of your debts. You must qualify for a debt forgiveness program for this debt relief option to work. Most programs are administered by federal and state governments and include the following:
- Public service loan forgiveness
- Federal loan student debt loan forgiveness
- Teacher loan forgiveness
- Mortgage forgiveness for low-income households
Debt and Financial Hardship Resources in South Carolina
Residents of South Carolina going through a financial hardship that may result in homelessness, malnutrition, lack of food, or poor medical health can take advantage of the following financial hardship resources:
Temporary Assistance Programs
Temporary Assistance to Needy Families (TANF) is a welfare program that provides funds to families with needy children. You must meet the eligibility criteria of the program to qualify for assistance.
State Health and Human Services
- Medicaid in South Carolina pays the medical bills of eligible low-income families and individuals.
- Child Protective Services in South Carolina looks after the interests of children in the state. The program works by strengthening family bonds to ensure safe child care.
- Newborn Blood Screening is done to detect sickle cell, cystic fibrosis, and any emerging health condition in infants, so early care and treatment are administered.
- The Vaccination Program gives children free vaccine shots so that they can attend child care and school in the state of South Carolina.
- SNAP is a fund that helps low-income families meet their nutritional requirements by providing cash assistance for food.
- WIC is a nutritional program extended to pregnant women, breastfeeding mothers, children under five years, and postpartum women with free nutritional education on healthy foods.
The state of South Carolina has a robust child care system that South Carolinians seeking assistance can utilize. The programs available in South Carolina’s childcare system include the following:
- The Early Head Start program provides free childcare services to qualifying children under three years. Pregnant women and eligible families also benefit from the parental support offered in the program.
- The Head Start initiative offers 5-year-olds and below free childcare activities and lunch if they’re from a low-income household.
- The SC Child Care Scholarships program supports parents with an income below the 300% federal poverty level to meet their child care needs by offering scholarships. The parents should also be working or studying to qualify for the program.
The state of South Carolina also provides Special Needs and Early Intervention Programs that track your child’s developmental progress. These programs identify any developmental issues in a child and equip families with the necessary coaching guidance to assist their child's healthy development.
Shelters for the Homeless
South Carolinians facing homelessness due to foreclosures or low-income levels have access to one of the shelters spread across the state. However, you must confirm the availability of beds before visiting the home shelters.
Free Transportation Services
South Carolina Healthy Connections provides free transportation services to residents who want to attend medical, dental, vision, mental and behavioral health, and pharmaceutical visits or to collect medications.
TurboDebt Offers Debt Relief for South Carolina
If you want to live a debt-free life, consider getting started with one of several debt relief options in South Carolina. Be wary of scammers by researching an accredited company with transparent information, resources, and positive reviews.
TurboDebt is a reputable debt relief company helping South Carolinians get a fresh start from their financial burdens. Last year, our customers saved an average of 55% of their total debt enrolled before fees. Don't hesitate to contact us to see how much we can save you.
Take advantage of our free debt relief consultation to learn more about managing and eliminating your debts today.