BUSINESS

South Carolina Among States Most Delinquent On Debt

New study reveals the Palmetto State ranks alarmingly high when it comes to delinquency on consumer debt…

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A new study from consumer financial website WalletHub highlighted that South Carolina residents carry significantly above-average delinquency rates across several loan categories — auto, credit card and personal loans.

Though South Carolina doesn’t top the charts overall (this would be another case of ‘thank God for Mississippi’), the Palmetto State consistently landed in the upper ranks on each of these key indicators. The average share of South Carolinians behind on auto loans rose roughly 6.2% in the fourth quarter of 2024 — close behind national leaders in this category. And credit card delinquency remained in the low teens, echoing Alabama and Florida peers.

This rise in household financial strain aligns with broader economic trends previously highlighted by FITSNews. While “Republican” leaders have bickered and argued about modest tax shift proposals, the latest data (.pdf) from the U.S. Bureau of Labor Statistics (BLS) showed the state’s labor participation slipping to 57.5%. That rate trails the national average by more than five full percentage points — evidencing a persistent structural gap that limits both economic growth and individual opportunity.

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RELATED | SOUTH CAROLINA INCOME LEVELS STILL LAG

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It’s also just 0.2 percent higher than the all-time low of 57.3% set between August and October of 2022.

With fewer residents actively engaged in the workforce and wages lagging behind national benchmarks, it’s no surprise that many South Carolina households are struggling to keep up with their financial obligations. Delinquency in auto and credit card debt often signals deeper economic stress — and in South Carolina, it appears to be both a symptom and a consequence of longer-term economic underperformance.

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WHAT THIS MEANS FOR SOUTH CAROLINA…

  • Household strain deepens: Delinquency on auto loans and credit cards can lead to repossessions, higher interest rates, and damaged credit — trapping families in cycles of financial insecurity.
  • Policy concerns mount: This media outlet has extensively covered the implications of South Carolina’s low workforce engagement and stagnant income levels. Now, rising debt delinquency adds another layer of urgency to the conversation.
  • Opportunity cost grows: Low labor participation isn’t just a workforce issue — it’s a drag on economic mobility and state revenue, compounding the pressures facing already-strapped communities.

South Carolina’s elevated debt delinquency rates, as highlighted in WalletHub’s latest report, reflect deeper systemic issues the state has yet to fully address. With workforce participation still near record lows and income growth lagging behind the rest of the country, many South Carolinians are being left behind — both on the job front and in their ability to stay financially afloat.

This isn’t just a financial story — it’s a policy failure. The numbers underscore what too many families already feel: the cost of living continues to rise, but opportunity hasn’t kept pace. Without bold action to address labor participation, educational attainment and income disparities, South Carolina risks locking in a permanent underclass — one paycheck (or missed payment) away from crisis.

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FITSNews has repeatedly chronicled how the state’s twin approaches to “economic development” – massive bureaucratic expansions and escalating investments in crony capitalism – are coming up short of the mark.

“If the Palmetto State is ever going to pull itself out of the vicious cycle of poverty and joblessness, it must stop subsidizing the mindless growth of government (including corporate welfare) – and start empowering the small businesses and sole proprietorships which drive job and income growth,” our founding editor Will Folks wrote more than three years ago.

For years, FITSNews has championed aggressive income tax relief and other pro-free market reforms which would empower South Carolina small businesses and individual income earners to keep more of their money – thus enabling them to expand and employ more workers. Unfortunately, “Republicans” have decided to appropriate recent revenue surpluses elsewhere… choking off the ability of these businesses to expand.

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ABOUT THE AUTHOR …

Jenn Wood (Provided)

Jenn Wood is FITSNews’ incomparable research director. She’s also the producer of the FITSFiles and Cheer Incorporated podcasts and leading expert on all things Murdaugh/ South Carolina justice. A former private investigator with a criminal justice degree, evildoers beware, Jenn Wood is far from your average journalist! A deep dive researcher with a passion for truth and a heart for victims, this mom of two is pretty much a superhero in FITSNews country. Did we mention she’s married to a rocket scientist? (Lucky guy!) Got a story idea or a tip for Jenn? Email her at jenn@fitsnews.com.

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7 comments

Nanker Phelge June 19, 2025 at 10:43 pm

Fitsnews is a real shining advertisement for SC, constantly pointing out how poor and stupid the citizens are, how corrupt the judges are, and how über süber püber liberal the state “republicans” are (obviously real republicans would be giving RJ May a promotion). Who wouldn’t want to relocate a business or family there?

Reply
Anonymous June 20, 2025 at 3:53 pm

Actually, states run by Republicans are always poor, unhealthy, and undereducated. They like it that way. The less you know and the poorer you are the less likely you are to do anything about a corrupt government that does not serve its people.

Reply
Anonymous June 23, 2025 at 10:03 am

1

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Squishy123 (the original) June 20, 2025 at 7:29 pm

Nanker is just upset because Will exposed a problem that’s already well known around the country. People don’t think Ivy League educated, Nobel Laureates when someone brings up South Carolina. People aren’t exactly surprised to hear that Deliverance was filmed in the state. As far as I’m concerned we’re full, I hear Minnesota is open. Just watch the evening news to see how welcoming and warm the community is, does a day go by where there’s not at least one black shooting in the Midlands? Typically its multiple stories.

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Anonymous June 23, 2025 at 10:03 am

1

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Squishy123 (the original) June 20, 2025 at 7:32 pm

Anonymous, you just described the Corridor of Shame… what demographic makes up the majority of that area of the state?

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Anonymous June 23, 2025 at 10:02 am

1

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