Report: SC ranks 11th place for most people in financial distress

(The Center Square) — South Carolina ranked 11th place among states with the most people in financial distress.

The finding from WalletHub's new 2024 rankings of the States with the Most People in Financial Distress indicates the significant economic challenges many residents face, highlighting the need for "targeted and effective interventions," an analyst for the site told The Center Square.

"The data shows that South Carolina has a high proportion of individuals with financial difficulties, especially in terms of low credit scores and the number of distressed accounts," WalletHub analyst Cassandra Happe told The Center Square via email. "Being 8th in the share of people with accounts in distress and 13th in the average number of distressed accounts, it's apparent that many South Carolinians are experiencing severe financial strain.

"For state lawmakers and policymakers, these findings underline the urgent need to implement comprehensive support measures," Happe added. "Expanding financial literacy programs and increasing access to credit counseling services can provide residents with the knowledge and tools to manage their finances more effectively. Policies aimed at protecting consumers from predatory lending practices are also crucial in preventing further financial distress."

South Carolina ranked just ahead of Oklahoma and just behind New York. Neighboring Georgia ranked sixth, and North Carolina ranked eighth; nationally, Michigan ranked first, followed by Texas, Nevada and Tennessee.

"In addition to educational and protective measures, introducing or enhancing social safety nets, such as unemployment benefits and emergency financial assistance, can offer much-needed relief to those most affected by economic instability," Happe said. "These safety nets can act as a buffer, helping residents navigate through periods of financial difficulty.

"Overall, South Carolina's ranking emphasizes the importance of a multifaceted approach to economic policy," Happe added. "This approach combines education, protection, and support to help residents overcome financial challenges and achieve greater economic stability."