South Dakota Debt Relief
18 MIN READ
Published April 11, 2023 | Updated October 31, 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. Solutions like debt consolidation, debt settlement, and bankruptcy offer advantages and disadvantages. Before choosing one, it's essential to understand the implications before making a final decision.
Thankfully, TurboDebt's here to help you understand the various debt relief options available in South Dakota and provide insight into which will best fit 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 them in our debt relief program.
Take advantage of a free consultation with us today, and keep reading to learn more about debt relief in South Dakota, including key statistics, relief options, and financial hardship resources.
South Dakota’s Economic Picture
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 1.9% as of May 2023 compared to the national average of 3.7%.
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 prides 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 the state recording an average consumer debt of $87,697.
The State’s GDP was 48.98 billion U.S. dollars in 2021. While it may seem low, the state ranks high in GDP per capita at $64,462, thanks to its low population. The largest contributors to this revenue by industry include Hospitals, Meat, Beef and Poultry Processing, and Wheat and Soybean Wholesaling.
Even after 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 debt solutions, including the top types of debt we see residents needing relief.
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 involve negotiating with creditors for lower interest rates, reduced interest fees, debt forgiveness, waiver of late payment fees, and extended repayment periods.
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. Here are some of the key statistics about the state:
Average Consumer Debt
The state of South Dakota had an average consumer debt of $87,697 in 2022. The 4.8% increase in consumer debt was influenced by high inflation rates, high consumer demand, and low unemployment rates that encouraged already cash-strapped consumers to spend more.
Credit Card Debt
South Dakota residents had an average credit card debt of $5,071 in 2022, a jump of 10.5% from the year before. 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% or more, depending on the user’s balance. Such high interest rates continue to trap residents of South Dakota in debt.
Auto Loan Debt
South Dakotans average $22,113 in auto loan balances. This was a 5.6% jump from the previous year. Although this is lower than many other states, auto loans shifted to an average of over $20,000 for the first time in history, straining car owners in an already uncertain economy.
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% in 2021.
Despite this, the state had a relatively low past-due rate of 1% in December of 2022, just below the national rate of 1.4%. This shows that the state’s residents have managed to cover their mortgage payments.
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, accumulating interest fees over the years.
There were 552 bankruptcy filings in South Dakota in 2022, with Chapter 7 bankruptcies accounting for 456 cases, followed by Chapter 13 at 89 cases, and 1 Chapter 11 bankruptcy report. This is a decline from the previous decade, showing more Mount Rushmore State residents are seeking other ways to manage financial hardship and debt.
Average Income and Employment
With South Dakota's unemployment rate holding steady at a low 1.9% from March to May of 2023, it's a good indication of the economic strength residents enjoy.
The median household income in South Dakota is $63,920, slightly lower than the national median of $69,021. The state’s per capita income is $33,468.
South Dakota has an average credit score of 734, up from 733 in 2021. This score puts South Dakota among the states with the highest average credit scores countrywide. This indicates residents are likely eligible for lower interest rates when accessing loans, a crucial aspect when making a big purchase that requires borrowed funds.
Residents have maintained a good credit score despite below-average income levels mainly due to low delinquency rates.
South Dakota is one of the safest states with a low rate of identity theft. It ranks 48th with only 670 reports in 2022.
The leading type of identity theft in the state is credit card fraud. 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 58 financial institutions and is 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.
How TurboDebt Helped South Dakota Residents in 2022
In 2022, we helped 270 clients in South Dakota with our debt relief services. Out of those clients, 106 enrolled in our debt relief program, with an average enrolled debt of $21,073. Our reliable 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
At TurboDebt, we tend to see the following types of debts enrolled in our program the most:
Credit Card Debt
Credit card debt is the most common type of unsecured debt. Since credit card companies don't require any collateral, interest rates are usually high. Additionally, 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 fits your debt-to-income (DTI) ratio to get you living debt-free once again.
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, employability, marriage duration, and custody of children to decide how marital debt can be divided. This may result in you owing divorce debt.
At TurboDebt, we can help you overcome divorce debt so it won’t ruin your financial situation. Take advantage of our free consultation to learn more about our debt relief options.
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 can be partially attributed to the state’s small population size and tough weather, especially during winter.
TurboDebt can help you deal with business debt by determining your best course of action moving forwards. Don’t hesitate to learn how you can achieve a debt-free business.
South Dakota residents carry an average medical debt of $2,376, with 4.4% of those bills in collections. Even with insurance, medical costs can quickly spiral into debt from varying healthcare fees.
TurboDebt helps residents of South Dakota escape medical debt by providing manageable debt relief programs. We help you create an affordable plan, giving you ample time to clear medical bills, even on a low income.
The pandemic brought with it high unemployment rates resulting in homeowners falling behind on their mortgage payments. Even when the unemployment rates remained low, homeowners faced the same challenge as mortgage payments were affected by increased interest rates.
If you're stuck with debts from a mortgage you can't afford, a HELOC balance, or personal loans for home maintenance, let TurboDebt's experts help you find a solution to clear your debt.
South Dakota lacks a pension tax, making it convenient for retirees to live in the Mount Rushmore State. However, that doesn’t exempt them from accumulating retirement debt. Retirees in the state are estimated to need at least 48,055 a year to live comfortably.
South Dakota debt relief programs allow you to clear retirement debt with 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 (DMPs) are ideal for residents with stable incomes who are struggling to repay their unsecured debt. DMPs often involve lowering high-interests to make your monthly payments affordable. However, your repayment period will also be extended to three to five years to facilitate a lower monthly payment. A waiver on late penalty fees can also reduce your debt burden.
You’ll then deposit your monthly payments into a savings account the debt management company uses to repay your creditors. If you’re consistent with your monthly payments, your credit score will likely 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. This lets you combine existing debts into one. You'll make a lump sum payment toward all your other accounts using the debt consolidation loan, leaving you with one loan to clear.
Through the debt consolidation process, you’ll be making lower monthly payments at a single low interest rate. Loans used in debt consolidation include home equity loans, balance transfer credit cards, and personal loans.
Borrowers who’re struggling to keep up with monthly payments may want to consider a debt settlement instead of defaulting. Debt settlement companies facilitate this debt relief option by negotiating with lenders to forgive up to 50% of your total debt balance.
Once you agree to a settlement plan, you'll start making monthly payments into a savings account. After you've accumulated enough funds, the settlement company will pay off your creditors according to the agreement.
It's important to work with a reputable company to avoid scams. While debt settlement companies do charge fees for negotiating and maintaining your account, be cautious of organizations demanding upfront charges. You can check a company's credibility by looking up its accreditation in the Better Business Bureau and reading reviews from trusted sources.
South Dakota residents with low incomes stand to benefit the most from this debt relief option. Credit counseling agencies offer resources on topics like debt management and budgeting and give you the chance to attend free financial workshops hosted by certified credit counselors.
Credit counselors can also help you determine the best debt relief options based on your DTI ratio. You’ll also have access to your credit reports when participating in this type of debt relief.
Bankruptcies offer debt relief to residents of South Dakota by either wiping out their debts or restructuring repayment plans. However, many consider other options before choosing this solution since it can negatively impact your credit report for up to 10 years.
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.
Businesses that choose to file for Chapter 11 bankruptcy reorganize their debt payments to repay them in three to five years without affecting the daily operations of the company.
Chapter 13 bankruptcies allow individuals and businesses with a stable monthly income to make revised payments to discharge their debt within three to five years.
If you're considering bankruptcy, consider consulting with a law firm on the best type of bankruptcy to file based on your financial situation.
Debt forgiveness offers full or partial debt cancellation on your debt balance. However, these programs are uncommon and mostly offered through government organizations.
To qualify for a debt forgiveness program, you'll have to meet the requirements based on factors like your income or profession. These programs are usually run by the state and federal government, 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 facing financial difficulties that make it difficult to meet basic needs can access the following financial hardship resources:
Temporary Assistance Programs
TANF is a temporary financial assistance program that provides eligible families with monthly payments.
The Energy and Weatherization Assistance program helps low-income households in South Dakota pay their energy bills. It also helps make 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 malnutrition by providing cash assistance for nourishing foods.
Medicaid is a health insurance program run by the federal and state government with the purpose of delivering medical assistance to eligible residents of South Dakota.
CHIP is a medical insurance program for eligible low-income children in the state.
South Dakota's Child Care Assistance Program provides financial help for families once they meet the income guidelines of the program. They also provide support for issues like development screening for children.
The Independent Living Program helps youths between 14 to 21 years who are living in foster care plan for their future. It trains them in employment, health, and life skills so they can become self-sufficient.
The Boys Town Common Sense Parenting program offers parents classes to help 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 homeless 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 government agencies to transport individuals 60 years old and up for a suggested donation.
Finding Debt Relief in South Dakota
TurboDebt offers residents of South Dakota a way to take back control of their financial future. Our strategic planning, advising, and debt settlement services have helped hundreds of South Dakota residents find debt relief.
Take advantage of our free consultation now, and learn more about why we’re a trusted and reputable debt relief company serving residents across the U.S.