South Dakota Debt Relief
20 MIN READ
Published April 11, 2023 | Updated May 04, 2023
In a Nutshell
Debt relief is critical in South Dakota, as many residents struggle to manage their finances due to overwhelming debt. Whether it's credit card debt, medical bills, or other financial obligations, we understand how it can be challenging to keep up with payments and get back on track. Fortunately, options are available for those seeking debt relief in South Dakota, such as debt consolidation, debt settlement, and bankruptcy. Each option has its advantages and disadvantages, and before choosing one, it's essential to understand the implications before making a final decision.
Thankfully, we’re here to help you understand the various debt relief options available in South Dakota and provide insight into which will be best for your unique situation. Last year we were able to help our customers save an average of 56.92% of their total debt before fees by enrolling in our debt relief program. Take advantage of a free consultation with us today, or keep reading to learn more about debt relief in South Dakota, including key statistics, relief options, financial hardship resources, and more.
South Dakota’s Economic Picture
South Dakota is popularly known for being the home of Mount Rushmore, a historical landmark that attracts over 2 million visitors every year. What’s more, the State pride itself in a climate with four seasons, ensuring residents can benefit from various activities such as agriculture and tourism.
The state is synonymous with low populations and low unemployment rates, ensuring skilled residents can easily find jobs. But as even residents get work, they still feel the pinch of inflation, making it hard to pay their bills and manage their income comfortably. Consequently, many residents have found themselves struggling with debt, with the state recording an average consumer debt of $87,697.
South Dakota, the land of infinite variety, is an economic powerhouse of sorts. The state is low-tax and has the lowest unemployment rate of 2.1% as of February 2023 compared to the national average of 3.6%.
The State’s GDP in 2021 was 48.98 billion U.S. dollars. While it may seem low, the state ranks high in GDP per capita at 64,462 U.S. dollars, thanks to its low population. The largest contributor to this revenue by industry include Hospitals, Meat, Beef and Poultry Processing, and Wheat and Soybean Wholesaling.
What’s interesting is that South Dakota remained unaffected economically during the pandemic. While other states economy’s shut down and people practiced social distancing and wore masks, South Dakota refused to participate. In fact, thanks to its low population, the State was already practicing social distance pre-Covid.
Despite the economy remaining unfazed by the pandemic, South Dakotans still battle with high housing costs and keeping pace with bills. Debt relief programs in South Dakota have come in to help residents feeling the financial pinch.
Below we’ll discuss South Dakota deb solutions, including the top types of debt we see residents get relief from.
How does Debt Relief Work in South Dakota?
Debt relief programs in South Dakota offer a range of options to help individuals struggling with debt. In order to reduce or restructure debt, these programs frequently involve negotiating with creditors for lower interest rates, reduced interest fees, debt cancellation, debt forgiveness, waiver of late payment fees, and extended repayment periods.
The programs also offer financial assistance to those who need it. Debt alleviation programs may be sponsored by government agencies, non-profit organizations, or private corporations.
Debt relief programs can bring much-needed relief to people trying to keep up with bills and expenses, but it's crucial to do your homework and find a trustworthy program that meets your specific needs and financial situation.
Debt and Finance Statistics Specific to South Dakota
Understanding the current state of debt and finance in South Dakota can be essential for individuals, families, and business owners to make informed financial decisions. The following information and statistics about South Dakota were among the most important during our research.
Average Consumer Debt
The state of South Dakota has an average consumer debt of $87,697 from $83,699 in 2021. The 4.8% increase in consumer debt was influenced by high inflation rates, high consumer demand, and low unemployment rates that encouraged the already cash-strapped consumers to spend more.
Credit Card Debt
South Dakota residents have an average credit card debt of $5,071, a jump of 10.5% from 2021. This is due to increased consumer spending as the cost of living was brought up by the FED’s decision to increase key interest rates from 0.25% to 4.50%.
In the long run, credit card interest rates in the state rose to around 18%, depending on the user’s balance. Such high-interest rates trap residents of South Dakota in debt, thus requiring debt relief.
Auto Loan Debt
South Dakotans average $19,021 in auto loan debt with a delinquency rate of 2.57%. Residents of the state must escape this debt trap or risk the repossession of their vehicles. Luckily, they can enroll in debt relief programs and pay off their car loans.
South Dakota residents have an average mortgage debt of $180,270 compared to the national average mortgage debt of $236,443. The state’s average mortgage debt increased by 7.5% from $167,739 in 2021.
Despite this, the state has a relatively low past-due rate of 0.7%, just below the national rate of 1.0%. This symbolizes that the state’s residents have managed to control their mortgage payments.
But for residents who have fallen behind on mortgage payments, debt relief programs are readily accessible to achieve a debt-free life.
Student Loan Debt
South Dakota residents have an average student loan debt of $30,954, which is lower than the national average of $37,667. About 13.1% of South Dakotans owe student debt loans, with 59.2% of them under the age of 35 years.
Student loan debt can be a significant burden for many residents, as it can take up to 20 years to clear, hence, accumulating interest fees over the years.
Household debt is a component of your income multiplied by your DTI ratio. Therefore, with a median household income of $63,920 and a debt-to-income ratio of 1.272, South Dakotans owe a household debt of $81,360.
This signifies the need for debt relief options in the state, as residents owe more than they earn.
There were 552 bankruptcy filings in South Dakota in 2022.
Chapter 7 bankruptcies accounted for 456 cases, followed by Chapter 13 at 89 cases, and 1 Chapter 11 bankruptcy report. However, this represents a decline in bankruptcy cases from the Great Recession time.
Average Income and Employment
As of December 2022, South Dakota's unemployment rate was 2.2%, and the state's average hourly wage was $28. The largest employment sectors are Healthcare and Social Assistance, Retail Trade, and Accommodation and Information.
The median household income in South Dakota is $63,920, slightly lower than the national median income of $69,021. The state’s per capita income is $33,468.
South Dakota has an average credit score of 734 from 733 in 2021. It’s among the highest average credit scores countrywide, meaning that residents’ eligibility to lower interest rate loans is assured. This is a crucial aspect when considering debt consolidation as your debt relief option.
Residents have maintained a good credit score despite below-average income levels mainly because of the low delinquency rates.
South Dakota is one of the safest states with a low rate of identity theft. It ranks 51 with 27 identity theft reports per 100k residents. However, with the low population in South Dakota, identity theft reports total 239.
The leading type of identity theft in the state is credit card fraud. You should protect yourself against identity theft by monitoring your credit reports, using strong passwords, and avoiding sharing personal information online.
Banking and Tax Info
South Dakota has a business-friendly banking and tax environment with no personal or corporate income tax. However, the state’s sales tax rate is 4.50%, and has an average local sales tax rate of 1.90%. It also has a property tax rate of 1.17% of the homeowner’s home value.
The state is home to 57 financial institutions. It’s mainly known for its trust companies, which are often used for estate planning and wealth management purposes.
The banking industry and trust companies in South Dakota have total assets worth above $3.46 million. The largest financial market is Sioux Falls, with total deposits of $690,019 million.
Internal Debt Statistics from 2022:
TurboDebt is a national debt relief company that works with residents of South Dakota to help them achieve a debt-free life. In 2022, we managed to work with 270 clients. Out of them, 106 enrolled in our debt relief program, with a total enrolled debt of $2,253,711, and an average client enrolled debt of $21,073. Our credible team managed to save customers an average of 56.92% of the total debt enrolled before fees.
Top Types of Debt to get Relief from in South Dakota
Many different unsecured debts will qualify for relief in South Dakota, but here at TurboDebt we tend to see the following types of debts enroll in our program most frequently.
Credit Card Debt
Credit card debt is the most common type of unsecured debt. Since it doesn’t have any collateral, interest rates are usually high. Additionally, credit card companies charge a penalty fee whenever you’re past due, trapping you in a continuous debt cycle.
TurboDebt’s consultations can assist you with tackling your credit card debt, and help set you up with a payoff plan that is convenient to your DTI ratio. This enables you to avoid debt accumulation and live a debt-free life once you repay your credit card debt.
The state of South Dakota is an equitable distribution state. This means that if your marriage was coupled with debts, you’ll most likely inherit some of it, depending on the court’s decision.
The court will use factors like amount and sources of income, needs, employability, marriage duration, and custody of children to decide how marital debt will be divided. This may result in you owing divorce debt.
At TurboDebt, we will help to ensure that divorce debt won’t ruin your financial situation through our debt settlement program. Enrollment in the program is open, and you can take advantage of our free consultation to learn more about debt relief.
South Dakota is a business-friendly state. It doesn’t charge a tax rate on personal income, corporate income, capital gains, and corporate capital gains. This attracts small businesses to incorporate in the state because of the tax incentives.
Despite these tax benefits, some businesses fail to break even and end up accumulating business debt. This is largely due to the state’s small population size and tough weather, especially during winter.
The population size hinders businesses from achieving their ROI since demand is low. While transportation to other target markets costs more, and it’s disrupted during winter resulting in losses.
TurboDebt can help you deal with business debt by determining your best course of action moving forwards. Don’t hesitate to reach out to learn how you can achieve a debt-free life.
Residents of South Dakota are likely to accumulate medical debt as the state hasn’t expanded its Medicaid. What’s more, the state has one of the strictest medical coverage policies; for instance, it lacks a family planning program, and qualifying for Medicaid if you’re below 64 years is difficult because of the income limits. As such, residents have to deal with accumulating medical bills when accessing medical assistance.
TurboDebt helps residents of South Dakota escape medical debt by providing manageable debt relief programs. This provides residents with ample time to clear medical bills, even if they have low incomes.
The pandemic brought with it high unemployment rates resulting in homeowners falling behind their mortgage payments. Even when the unemployment rates remained low, homeowners faced the same challenge as mortgage payments were affected by increased interest rates.
South Dakota lacks a pension tax making it convenient for retirees to live here, but that doesn’t exempt them from accumulating retirement debt.
For retirees to live comfortably in the state, they must have an income of $62,634. This is well above their average income of $24,020, resulting in some retirees accumulating retirement debt.
South Dakota debt relief programs allow you to clear retirement debt through well thought out and manageable solutions. We can help you determine which will be best suited to your financial situation.
South Dakota debt relief options
South Dakotans can access debt relief through the following top options;
Debt management programs
Debt management programs are ideal for residents with a stable income but struggling to repay their unsecured debt. DMPs work by lowering high-interests to make your monthly payments affordable. Your repayment period will also be extended to 3 to 5 years to facilitate a lower monthly payment. A waiver on late penalty fees can also reduce your debt burden.
This debt relief option is usually administered by nonprofit credit counseling agencies. Their certified credit counselors offer counseling services on the best repayment plan based on your income and debt burden. You’ll then deposit your monthly payments into a savings account from which they’ll repay your creditors.
If you’re consistent with your monthly payments, your credit score will improve at the end of the debt management program.
Debt consolidation loans
Residents with good credit scores can take out debt consolidation loans at lower interest rates. It enables them to combine their existing debts into one and make a lump sum payment using the debt consolidation loan. This leaves you with one loan to clear.
By so doing, you make debt relief affordable because you’ll be making lower monthly payments and interest fees, enabling you to attain a debt-free life.
Loans used in debt consolidation include home equity loans, balance transfer credit cards, and personal loans.
Borrowers who’re struggling with meeting their basic needs and monthly payments can qualify for this debt relief option instead of defaulting. Debt settlement companies facilitate this debt relief option. They negotiate with lenders to forgive up to about 50% of your debt balance.
For debt settlement to work, you must present a lump sum payment to your debt collectors, or be able to commit to revised monthly payments. The debt-collecting company may request a repayment of around 50% or more to agree on forgiving the remaining balance.
However, you must be careful not to fall into the hands of scammers when pursuing debt settlement plans. You can do this by checking the credibility of the debt settlement company on the better business bureau platform or through online review sites such as Trustpilot.
South Dakota residents with low incomes stand to benefit the most from this debt relief option. They’ll get to learn about money, debt management, and budgeting and attend free financial workshops hosted by credit counselors.
The credit counselors will also help you determine a debt management plan based on your DTI ratio. They also engage creditors in debt negotiation whereby they ask for a waiver on late repayment fees, lower interest rates, and an extended repayment period where monthly payments are lowered.
You’ll have access to your credit reports when participating in credit counseling.
Bankruptcies offer debt relief to residents of South Dakota by either wiping off debts or restructuring their repayment plans. However, many South Dakotans dislike this debt relief option since it can stay on your credit report for up to 10 years. This limits your access to loans in that period.
Chapter 7 bankruptcy offers debt relief by liquidating your nonexempt properties to pay off lenders. Debts that aren’t cleared from the liquidation process are discharged, and you’re offered a fresh start from debt.
Chapter 11 bankruptcies are preferred by businesses struggling with debt payment. These businesses get their payments reorganized for clearance within 3 to 5 years without affecting their daily operations.
Chapter 13 bankruptcies are for individuals and businesses with a stable monthly income and can afford debt settlement in 3 to 5 years.
Bankruptcies work best on unsecured debts since secured debts are likely to be repossessed by debt collection agencies. You should consult your law firm on the best type of bankruptcy to file based on your financial situation.
Debt forgiveness works by offering a partial or full debt cancellation on your debt balance. However, you must enroll in a debt forgiveness program to qualify for debt cancellation. These programs are usually run by the state and federal governments, including the student debt loan forgiveness program.
Other debt forgiveness programs include the following;
- Public service loan forgiveness
- Perkins loan discharge and forgives
- Teacher loan forgiveness
- Income-driven repayment forgiveness
Debt and Financial Hardship Resources
South Dakota residents with low income or are struggling with debt, thus facing financial difficulties, can access the following debt and financial hardship resources;
Temporary assistance programs
TANF is a temporary financial assistance program that eligible families can qualify for monthly payments. The program is also a work program.
The Energy and Weatherization Assistance program helps low-income households in South Dakota pay their energy bills. It also makes their homes more energy efficient.
State health and human services
SNAP is a nutritional assistance program that helps eligible low-income families in South Dakota avoid starvation and malnutrition.
Medicaid is a health insurance program run by the federal and state governments to deliver medical assistance to eligible residents of South Dakota.
CHIP is a medical insurance program for eligible low-income children in the state.
Child Care Assistance Program is a financial assistance program for families with kids, and they meet the income guidelines of the program. The families get to learn about childcare issues like development screening.
The Independent Living Program helps youths between 14 to 21 years and are living in foster care plan for their future. It trains them on employment, health, life skills, education, connections, and housing so they can become self-sufficient.
The Boys Town Common Sense Parenting program offers parents classes that will improve their communication and interactions with their kids.
Shelters for the homeless
SD Cares is a funding program for eligible homeowners and renters who’re struggling with housing arrears due to the pandemic. It’s administered through the American Rescue Plan and the Consolidated Appropriations Act, 2021- Emergency Rental Assistance plan.
However, if you’re already homeless due to a foreclosure or a tough economic situation, please seek out one of the state’s homelessness shelters.
Free transportation services
Medicaid recipients qualify for free transportation services to their medical appointments. Transportation services are offered through ambulances, select community transportation systems, and secure medical transportation services. Non-emergency transportation is also covered in the program.
The Long Term Services and Support contracts nonprofit organizations and local gov agencies to transport 60+ old individuals for a suggested donation.
Conclusion on Finding Debt Relief in South Dakota
TurboDebt’s debt relief program offers residents of South Dakota a way to take back control of your financial future. Depending on your unique situation, we will place you into a customized South Dakota debt relief program, and if you complete it in full, you will end up saving roughly 50% of your total debt enrolled before any fees. Take advantage of our free debt relief consultation now, and learn more about why we’re one of the most trusted and reputable debt relief companies serving the nation today!
If you’re not ready to pursue a relief option yet and are simply doing your due diligence, remember to always check a company’s online reviews and accreditations before committing to a program