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.”
The latest available data says that the average South Dakota household has $9,055 in credit card debt. Citizens in this state collectively owe $2,900,273,743, an increase of $80,942,503 from the beginning of the year.
Consolidated Credit Helps South Dakota Residents Reduce Their Total Credit Card Payments by Up to 50%
This chart shows a breakdown of average consumer debt in South Dakota based on the latest Household Debt report from the Federal Reserve.
In 2023, 625 people in South Dakota filed for bankruptcy.
Income and employment in South Dakota
The per capita income in South Dakota is $36,850. That’s slightly lower than the national average of $41,261. South Dakota has a median household income of $69,457. And the minimum wage is higher than the national wage at $11.20.
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.
The unemployment rate in South Dakota is 2%, which is lower than the national rate of 4%.
South Dakota has a 0% income tax rate. The state imposes a state sales tax of 4.2% and permits local governments to sanction a local option sales tax of up to 6.11%.
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.”
South Dakota housing market
While the South Dakota real estate market hasn’t kept pace with the national market, it is not far behind. The median house price increased from $296,821 in 2023 to $300,313 in 2024.
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
“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.
CNBC reported in 2024 that the average South Dakotan would need about $54,047 a year to retire. A 20% comfort buffer ($10,809) is recommended. That means the target for a comfortable retirement in South Dakota would be about $64,856 a year.
Average South Dakota insurance premiums
South Dakota, much like the rest of the country, operates under an “at-fault” based system for auSouth 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. Average annual auto insurance premiums in South Dakota sit at $2,278.
The average homeowner insurance premium in South Dakota is $2,838 per year.
The average cost of health insurance for an individual is $5,974.
Helpful resources for South Dakotans facing hardship
The Census Bureau reports that there are 56,590 veterans that live in South Dakota. 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 Headquarters: 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
How Consolidated Credit helps South Dakota residents find debt relief
In 2024, Consolidated Credit provided free credit counseling services to 312 credit users in the state of South Dakota. Of those, 46 went on to consolidate their debt with our help through a debt management program (the average amount of debt enrolled was $16,112). Those who did not enroll received a free debt analysis and complementary budget evaluation and were directed to the right solutions for their respective situations.
We’d also like to congratulate the 18 South Dakotan residents who 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) 276-1544to 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.
This content is based on accredited financial data gathered from reputable sources, such as government websites, credit bureaus, and nonprofit organizations. All articles are written by certified credit counselors and fact checked by certified financial experts.
Our team strives to provide educational content that fully informs readers of all their options as they relate to debt, credit and personal finance. Our goal is to give readers the information they need to make informed financial decisions on their own.
This article contains references that provide sources for the financial data we used. The numbers in brackets [1,2,3] are clickable links to each data source or study referenced.
