National debt has been on a steady and worrisome incline, trickling down to citizens of Charleston, already dealing with the aftermath of a global crisis. The crisis is felt by both individuals and government bodies, with four South Carolina representatives voting against a U.S. House initiative to implement a debt ceiling deal.
This has resulted in “fiscal stalemates” across federal legislation, with South Carolina experiencing a less substantial but still significant challenge that potentially affects salaries and debt consolidation. It's clear that the population is experiencing its own issues dealing with debt, but that is not solely on the troublesome state of the economy and government-level finances right now.
With locals having the second-highest rate of delinquent debt in the entirety of America, it's worth considering the role of social media (among other factors) in this financial crisis.
The Impact of Social Media on Spending Habits
Social media can have a massive impact on how people spend money. They are massive platforms that are essentially built for engagement, making them ripe grounds for advertisments and influencer marketing.
It so happens that Charleston is one of 27 counties in South Carolina that uses social media in abundance. The biggest platforms being used by locals include Twitter, Facebook, Instagram, and YouTube. Those platforms are notoriously filled with branded content, both blatant and seeded to look organic.
When you consider exactly how social media impacts spending habits, it's important to note that 70% of people use social media to make purchasing decisions. Even for users that aren't necessarily hopping on a social networking site for the purpose of shopping, user-generated content may still end up influencing them to keep a certain product, service, or brand in mind. According to influencer trust marketing reports, 56% of users end up buying a product after seeing it used by an influencer.
As Charleston citizens get extended exposure to travel blogs, ads, and posts sharing rave reviews about certain products, the more they turn to loans, spending, and other lines of credit to “keep up” and get that instant gratification. It's not just limited to the “usual suspects” of social media either. According to a new study from FTC, Social Catfish, and the FBI, South Carolina has ranked 10th overall in money lost to romance scams This is a 21% increase from the previous year, with a startling average loss per victim worth $28,335.
A Look at Charleston in Debt and Changes for the Future
In this age of connectivity, more Charleston citizens are becoming more vulnerable to scams and outlets that just add to the piling debt that already came after the big resignation wave that hit the nation. Roughly 13.8% of the state's population is already living in poverty. The average household debt also happens to be $49,630.
Things aren't looking much better at a government level, with the Charleston county seeing 411,406 unaudited citizens get tax supported debt at a net of $659,585,260. According to the S.C. Department of Revenue, the top income tax debtors also ow the state around $120 million.
While federal changes will be harder to smooth over, individuals can make use of the government-sanctioned loan forgiveness plan. This only applies to people that makes less than $125,000 a year, but it can be a big help for those that are still paying off federal loans like student loans.
It's not just Charleston graduates that are finding ways to get out of debt, either. The likes of Charleston Harbor Resort & Marina have been raising money in cooperation with local youth organizations. It's a great way to support young children in the community and help fund their educational needs despite the growing debt crisis in the county.
In these aspects, social media's role in the debt crisis can be shifted as it becomes a tool to raise awareness and build visibility for community programs. Individuals will have to change their social networking habits themselves to avoid any excess spending, but there is still hope yet for a slow but steady recovery despite the challenges of the economy and digitalization.
