Struggling with credit card debt?
Get your FREE quote today!

South Dakota Debt Relief Guide

Often referred to as “the land of infinite variety”, South Dakota is home to one of America’s most notable landmarks, Mount Rushmore. This helps tourism bring in $2 billion annually to the state, but South Dakota’s main resource is its strong agricultural base. With more than $21 billion in economic impact and employing over 115,000 South Dakotans, agricultural production represents 9% of the total state’s GDP.

“South Dakota’s agricultural industry plays a big part in the economic factors of the state,” says Gary Herman, President of Consolidated Credit. “And with the number of farms down now from 2020, we could be on the cusp of serious economic challenges for residents if that trend continues. It’s important for workers and business owners to shore up their finances in the face of that kind of uncertainty.”

Consolidated Credit Helps South Dakota Residents Reduce Their Total Credit Card Payments by Up to 50%

Consumer debt in South Dakota

This chart shows a breakdown of average consumer debt in South Dakota based on the latest Household Debt report from the Federal Reserve.

In 2020, 793 South Dakotans filed for bankruptcy compared to the previous year’s filing total of 964.

Income and employment in South Dakota

The per capita (average per person) income in South Dakota is $57,273. That’s slightly lower than the national average of $59,729. South Dakota has a median household income of $58,275. And the minimum wage is higher than the national average at $9.95.

South Dakota is a right-to-work state. This mandates that employers, labor organizations, or any persons cannot require an individual to become or remain a member of a labor organization. You can’t get rejected on a job application or fired based on your union membership status. Paying dues, fees, or assessments as a condition of employment, new or continued, is also prohibited.

South Dakota is an employment-at-will state. Essentially, an employer can terminate employment at any given moment for any given reason. The same goes for employees. They can resign at any given moment and for any reason at all. An employer and employee do not guarantee they will uphold their end of an employment agreement.

Throughout 2020, South Dakota maintained low rates of unemployment when compared to the rest of the country at 3.5%. By 2022, that percentage had dropped to 2.5%, which was 1.3% below the national average.

Apply for unemployment benefits in South Dakota »

Unemployment Benefits: 

  • Minimum per Week: $28
  • Maximum per Week: $414
  • Maximum availability of Benefits: 26 weeks

Find general information about South Dakota’s UI Program »

File a UI claim online »

To file a claim by telephone number:

  • 605-626-2452

Job Centers: Visit

Banking and taxes in South Dakota

South Dakota has a 0% income tax rate. The state imposes a state sales tax of 4.5% and permits local governments to sanction a local option sales tax of up to 6%, with an average combined sales tax of 6.49% [1]

South Dakota is considered a tax haven. Expert Michael Heller says, “The state [South Dakota] has marketed itself for several decades now as the place for very wealthy people to bring their money both for secrecy and for various kinds of trust administration – goodies that they can get if they bring their money there.” [2]

Banking in South Dakota is common much like the rest of the U.S., as 4.9% of South Dakotan residents do not have a checking or saving account. 

South Dakota housing market

While the South Dakota real estate market hasn’t kept pace with the national market, it is not far behind. Since the beginning of last year, the median home value in South Dakota increased by almost 5%, while the national average saw price increases by 7.5%.[3]

The median price for homes in South Dakota is $222,435, an increase of 4.9% since last year. However, the median price is lower than the national average of $293,349.

South Dakota has an unlimited homestead exemption, making owning a home a highly attractive option for those that can afford to buy. Though that is becoming more difficult. Rehabbers, flippers, and wholesalers have taken advantage of appreciation rates that leaned heavily in their favor. This has led to an increase in competition which is likely to drive prices up at least 9% over the next 12 months.[4] 

  • 67.8% of South Dakotan residents are homeowners
  • Average mortgage payment: $1,298
  • Average mortgage debt: $28,140
  • Median rent payment: $747

For those seeking mortgage relief, South Dakota offers help through the SD Cares Housing Assistance Program. If you are finding it is a challenge making your rental payments, seek assistance through SD Cares Housing Assistance Program – Rental.

Talk to a HUD-certified housing counselor to get help with the housing challenges you’re facing.

Retirement in South Dakota

“Hail, South Dakota!” The state song is also a great slogan for those looking to retire peacefully. While not the retirement hub that Florida is, South Dakota boasts peaceful small towns, lower than average cost of living, and low taxes.

Currently, the average South Dakotan has $428,530 saved for retirement, almost $310,000 less than what someone would need to retire comfortably in the state ($738,000). The average age of retirement is 66, while one in five retirees rely on Social Security for at least 90% of their income. 

Average South Dakota insurance premiums

South Dakota, much like the rest of the country, operates under an “at-fault” based system for automotive accidents. This means the insurance company of the person found at fault for the accident must pay for all expenses that may incur. Auto insurance premiums sit at $1,575, just slightly lower than the national average of $1,674.  

In South Dakota, driving without insurance is against the law. South Dakota requires all drivers to have minimum amounts of liability and uninsured motorist coverage:[5]

  • Bodily injury liability coverage – $25,000 per person; $50,000 per accident
  • Property damage liability coverage – $25,000 per accident
  • Bodily injury uninsured/underinsured motorist coverage – $25,000 per person; $50,000 per accident
  • Property damage uninsured/underinsured motorist coverage – $25,000 per accident

Average Homeowner insurance premiums in South Dakota are higher, $2,288 per year, than those nationwide, around $1,680.

Roughly 9% of South Dakota’s population is without healthcare. Attributed due to the average monthly premium of $560 a month ($6,730 per year) for health insurance, which ranks unfavorably in terms of premium coverage in the rest of the country.

Helpful resources for South Dakotans facing hardship

Food insecurity

City/RegionFood BankPhone NumberAddress
PierreFeeding South Dakota605-494-366320562 Grace Avenue, Pierre, SD 57501
Rapid CityCommunity Food Banks of SD605-348-26891111 N Creek Dr, Rapid City, SD 57703
Sioux FallsFeeding South Dakota605-335-03644701 N Westport Avenue, Sioux Falls, SD 57107


As of 2019, South Dakota was home to 57,550 Veterans. These resources are available to help Veterans that are facing unemployment, homelessness, and other hardships.

South Dakota Department of Veterans Affairs
National crisis hotline: (800) 273-8255
South Dakota Veterans Support Line: (800) 316-8387 ext. 9-6869

Soldiers & Sailors Memorial Building
425 East Capitol Avenue
Pierre, SD 57501-1305
(605) 773-3269 / (877) 579-0015

Department of Veterans Affairs Claims Office
c/o VA Regional Office2501 W. 22nd Street
Sioux Falls, SD 57105-1305
(605) 333-6869

Find a Veteran service office in your area >>

Helpful employment resources for Veterans:

How Consolidated Credit helps South Dakota residents find debt relief

Consolidated Credit has provided free credit counseling services to 312 credit users in the state of South Dakota in 2021. Of those, 10 went on to consolidate their debt with our help through a debt management program (the average amount of debt enrolled was $5,100). Those who did not enroll received a free debt analysis, complementary budget evaluation, and were directed to the right solutions for their respective situations.

We’d also like to congratulate the 12 South Dakotan residents that got debt-free last year with the help of Consolidated Credit!

Relief options to consider if you’re in debt in South Dakota

If you have good credit and need to pay off credit card debt and other non-secured debts, a debt consolidation loan is an excellent option for you. By having good credit, you can refinance your debt at a low-interest rate and enjoy one monthly payment. This will help you get out of debt faster, and you may wind up paying less each month. This is an excellent solution for South Dakotan residents with high debt and a good credit score.

South Dakotan homeowners may qualify for a home equity loan or a home equity loan of credit, sometimes called a (HELOC). These types of loans use the equity in your home. Due to rapid home value increases, many residents have equity in their homes. The loan allows you to borrow against the equity in your home and pay off credit cards and other debt. This is not a step to take lightly because you could lose your home in foreclosure if you can’t make the payments. If you are considering borrowing against your home, call 1-800-435-2261 to speak with a HUD-certified housing counselor to make sure this is a safe option for you.

Consolidated Credit helps South Dakotan residents with counseling programs that identify the best way to get out of debt after considering their situations. South Dakotan residents can get a confidential debt and budget evaluation from a certified credit counselor. Afterward, the counselor will go over the available options and which course of action best meets a person’s needs and goals.

In South Dakota, as in other states, it’s best to avoid bankruptcy. If you can afford to repay all that you owe to avoid credit damage but can’t do it on your own, a debt management program can help. You enroll through a credit counseling agency. The agency will work with your creditors to reduce or eliminate interest and work out a payment schedule. Qualifying South Dakotans can get out of debt in 36-60 payments, on average.

Another option for South Dakotan residents is debt settlement. With debt settlement, you settle your debt independently or with the help of a debt settlement company. In this program, you agree to pay your creditors a portion of what is owed. This will damage your credit rating because you are not paying on the terms you first agreed to. Late payments, which are often part of this program, will hurt your credit rating for seven years. Even with those negatives, this can be an excellent program for South Dakotan residents with overwhelming debt. It can help you avoid bankruptcy.

If you’re curious how we can help you, below, you will find a few case studies from clients that we’ve helped in Colorado. If you’re facing challenges with debt, call us at (844) 276-1544 to receive a free debt and budget evaluation from a certified credit counselor.

Ready to solve your problems with debt? Talk to a certified credit counselor for free to find the best way to get out of debt for you.

Case Study

Marie from Pierre, SD

“This has been such a great service and a great experience. Thank you! ”

Where she started:
  • Total unsecured debt: $41,277.00
  • Estimated interest charges: $24,133.79
  • Time to payoff: 14 years, 11 months
  • Total monthly payments: $1,651.08
After DMP enrollment:
  • Average negotiated interest rate: 3.66%
  • Total interest charges: $3,008.17
  • Time to payoff: 4 years, 10 months
  • Total monthly payment: $764.00
Time Saved

10 years, 1 month

Monthly Savings


Interest Saved


Want to know if Consolidated Credit can help you, too? Get a free, confidential debt and budget analysis now.