Mismanagement Of Personal Finances And Its Impact on Naval career

[8404]

Some Navy Enlistment Classification's, NEC's require a 'security clearance' in order for the Sailor to perform the duties and responsibilities of that job. Imagine having that security clearance revoked, because they are experiencing financial difficulties or developing a history of not meeting financial obligations!

I recently learned of a Sailor, (not in the medical community) who had their security clearance revoked and can no longer perform the duties of their assigned NEC for this very reason. This can impact a Sailors advancement, ability to work within assigned NEC and their entire Naval career. See Article 134—(Debt, dishonorably failing to pay) of the UCMJ:

Read below:

RAAUZYUW RUENAAA1099 2221745-UUUU--RUCRNAD.
ZNR UUUUU ZUI RUEWMCE3993 2221741
R 101744Z AUG 07 PSN 049231K19
FM CNO WASHINGTON DC

TO NAVADMIN
ZEN/NAVADMIN @ AL NAVADMIN(UC)
INFO ZEN/CNO CNO
BT
UNCLAS

SUBJ: MISMANAGEMENT OF PERSONAL FINANCES AND ITS IMPACT
FM CNO WASHINGTON DC//N09//
TO NAVADMIN
BT
UNCLAS//N07000//
NAVADMIN 198/07
MSGID/GENADMIN/CNO WASHINGTON DC/N09/JUL//

SUBJ/MISMANAGEMENT OF PERSONAL FINANCES AND ITS IMPACT//

REF/A/DOC/SECNAVINST 5510.30B/06OCT2006//
REF/B/DOC/CNO LTR/12SEP2006//
NARR/REF A IS DEPARTMENT OF THE NAVY PERSONNEL SECURITY PROGRAM (PSP)

INSTRUCTION. REF B IS LETTER FROM CNO REGARDING IMPLEMENTATION OF ADJUDICATIVE GUIDELINES FOR DETERMINING ELIGIBILITY FOR ACCESS TO CLASSIFIED INFORMATION.//

POC/MADDOX-STUBBS/NA/N09N2/WASHINGTON, DC/TEL:202-433-8853//
REMARKS/

1. REF A ESTABLISHES ADJUDICATIVE GUIDELINES FOR ALL U.S. GOVERNMENT CIVILIANS, MILITARY PERSONNEL, CONSULTANTS, CONTRACTORS, LICENSEES, CERTIFICATE HOLDERS OR GRANTEES AND THEIR EMPLOYEES, AND OTHER INDIVIDUALS WHO REQUIRE ACCESS TO CLASSIFIED INFORMATION AND/OR ASSIGNMENT TO SENSITIVE OR NATIONAL SECURITY POSITIONS AS IMPLEMENTED BY REF B.

2. THE DETERMINATION OF GRANTING AND THE CONTINUANCE OF ELIGIBILITY OF A SECURITY CLEARANCE IS CONSISTENT WITH THE INTERESTS OF NATIONAL SECURITY AND IS BASED ON NUMEROUS GUIDELINES TO INCLUDE FINANCIAL CONSIDERATION.

3. FINANCIAL CONSIDERATIONS HAVE BECOME A MAJOR CONCERN, 78 PERCENT OF THE DEPARTMENT OF THE NAVY DENIALS/REVOCATIONS OF CLEARANCES WERE DUE TO POOR FINANCIAL MANAGEMENT. CONDITIONS THAT COULD RAISE A SECURITY CONCERN AND MAY BE A DISQUALIFYING FACTOR UNDER THE CONTINUOUS EVALUATION PROGRAM ARE:

A. A HISTORY OF NOT MEETING FINANCIAL OBLIGATIONS.
B. DECEPTIVE OR ILLEGAL FINANCIAL PRACTICES SUCH AS EMBEZZLEMENT, EMPLOYEE THEFT, CHECK FRAUD, INCOME TAX EVASION, EXPENSE ACCOUNT FRAUD, FILING DECEPTIVE LOAN STATEMENTS, AND OTHER INTENTIONAL FINANCIAL BREACHES OR TRUST.
C. INABILITY OR UNWILLINGNESS TO SATISFY DEBTS.
D. UNEXPLAINED AFFLUENCE.
E. FINANCIAL PROBLEMS LINKED TO GAMBLING, DRUG ABUSE, ALCOHOLISM, OR OTHER ISSUES OF SECURITY CONCERN.

4. INDIVIDUALS WHO ARE ENTRUSTED WITH ACCESS TO NATIONAL SECURITY INFORMATION MUST ENSURE THEY AND THEIR SPOUSES ARE AWARE OF THE IMPACT POOR FINANCIAL MANAGEMENT MAY HAVE ON THEIR ABILITY TO MAINTAIN ACCESS TO NATIONAL SECURITY INFORMATION AND IN SOME INSTANCE THEIR CAREER. THERE IS ASSISTANCE FOR INDIVIDUALS WHO MAY FIND THEMSELVES IN FINANCIAL TROUBLE.

5. THE NAVY FLEET AND FAMILY SUPPORT CENTER PROVIDES A VARIETY OF FINANCIAL SERVICES WHICH INCLUDE PERSONAL FINANCIAL COUNSELING, SETTING UP A BUDGET, AND CHECK BOOK BALANCING CLASSES. CIVILIAN EMPLOYEES SHOULD BE REFERRED TO THEIR LOCAL PERSONNEL OFFICE FOR THE EMPLOYEE ASSISTANCE PROGRAM FOR FINANCIAL ASSISTANCE.

6. ASSISTANCE IS AVAILABLE, DO NOT WAIT UNTIL IT IS TOO LATE, GET HELP AT THE FIRST SIGN OF FINANCIAL TROUBLE, IT MAY JUST SAVE YOUR CAREER.

7. RELEASED BY ADMIRAL PATRICK M. WALSH, VICE CHIEF OF NAVAL
OPERATIONS.//
BT
#1099

NNNN

[HMC-FMF-PJ]

But MTV says life is all about the bling, the salesman promised no payments for a year and my credit card company says charge it. After all, life takes Visa and the TV commercial teaches me that I am not cool unless I use plastic to pay for all my purchases. I can always get a paycheck advance at 250% finance charges, but I can just put that on my other credit card...

[HMC-FMF-PJ]

Financial problems are seldom caused by how little you make and most often caused by how much you spend. And all those "little" purchases that don't make a difference quickly add up to really big bills in very little time that make a big difference.

$6 fancy coffee x 7 days a week x 52 weeks a year = $2,184 in fancy coffee

Of course, such "costs" become much higher when you add in convenience fee's, finance charges, and other expenses associated with using debit cards and credit cards.

[HMC8404]

PJ ... I would put that kind of information in black and white for a lot of people sent my way at my command. I used to be a Financial Specialist as one of my collateral duties, and everyone who had a creditor hounding the command was sent my way to be put on a budget to help them out.

In the beginning I would be surprised how many of them were ignorant to their ways ... but then it was the majority of them. Just total ignorance as to why they couldn't keep up with their bills. When I would sit with them down and tally up their daily "habits" for them and show them the costs of those same daily habits? Oh, the looks on some of these guys faces were pure shock when they realized how much of their money they were pissing away on their daily sodas, coffee, cigarettes, fast food lunches, magazines/newspapers, and daily lottery tickets. It was sad to see that they had no concept on just what they had been doing. You think it's common sense, but its not. Add things up like that, and it puts those kinds of spending habits into a different light for those folks. I would demonstrate their daily habits as a daily total, then show it as a weekly total, then a monthly total and ending with an annual total. Some were mortified of their stupidity when they saw just how much all of those habits cost them, but there were those that couldn't care less either. This wasn't always the junior enlisted, I often got the younger officers in there as well.

People, not just active duty, just don't realize how much a hole in your pocket will end up costing you your budget in the long run every day.

[8404]

Excellent information:

If people would take just one half of that 'pissed' away money and invest it, everyone would be surprised what the power of 'compound interest' can do.

Also, the stimulus money coming to many Americans, think about socking away just one half of that money into some form of investment, IRA, TSP account etc... Saving is 'key' for tomorrow's retirement.

What you save today, will determine how you will live in retirement.

Food for thought!

[HMC-FMF-PJ]

From the first cartoon watched, virtually all music videos played, and just about every commercial on TV, Americans are taught to be non-savers, bad consumers and practice poor purchasing habits.

I had a classmate living paycheck to paycheck that ended up paying around $36 for a $5 hamburger meal purchased with a debt card. He got the extra large soda and forgot about the transaction fee/convenience fee the restaurant charges. It wasn't much, but it was enough to empty his account. Rather than reject the purchase, the bank actually likes those transactions because they are so profitable.

He got nailed with an insufficient funds charge because he did not have enough money in his account to pay for the meal. He was only a few cents short but the bank automatically loans him $20 because that is their minimum amount for a cash advance. Since the purchase went through without any indication of a problem, the guy didn't realize something was wrong until the end of the month when he got his bank statement.

meal + XL soda + sales tax + debt card transaction fee
insufficient funds charge
cash advance fee
1 month finance charge on cash advance (I forget APR, but I think it was 24%)

With all the fee's and charges it put a bigger hole in his budget. I can't remember if he bounced a check because of it or had to make a late payments to avoid bouncing a check.

He could of avoided it all by using cash or by setting up his debt card to reject purchases when there is not enough money in his account. Or maybe if he could learn to save a few dollars so he has a cash cushion in his account to help him make it through the rainy days. We all know it is going to rain but if you aren't ready for it you are going to get soaked.

[HMC8404]

I don't use a checking account debit card anymore. I have been a member of Navy Federal Credit Union now for over 25 years and I don't have a credit/debit card there anymore, just my savings and checking account.

Instead I have a Western Union debit card.
http://www.unsecured-credit-cards-style.com/i/c/western-union-prepaid-mastercard.jpg

Because I alotted for a predetermined amount of my pay to be directly deposited into it's account (the account will hold up to $999.00), I don't get charged a monthly fee. The only fee I get charged is a $2 ATM fee (added to any additional ATM fees by that particular machine). But I have an ATM at work that has no fees for us employees, and if I choose to get some money out that way instead of 'cash back' after a store transaction, then I withdrawal from work. But I tend to use this for my shopping. If I don't have the money to buy something, I simply don't. There's no chance of having any banking fees added to my card transactions because this is not associated with a banking account.

I use my checkings account for automatic withdrawals for my car insurance, water and gas bills, and checks for my monthly rent and weekly church offerings. This way the checking account will not get confused with other purchases.

And you are sooo right PJ ... we are taught to be irresponsible consumers from the beginning as children. Ever watch those commercials between your kids cartoons?

This is something us parents need to do with our kids from the very beginning as well. We need to teach them to be responsible with their money. We need to teach them that they need to control their debt by spending responsibly. If you don't have the money and cannot pay back a loan/credit card for said item reasonably ... then you JUST DON'T BUY IT (or save up for it the old fashioned way). Above all else ... teach them to save save save for that rainy day! We can start with their allowances. I put 50% of my daughter's in a bank account for her. It's not her choice. Thus I'm teaching her to save and she has adjusted, as we all do when circumstances change for our incomes, to knowing the amount thats coming in. We can take small steps with our kids when they're younger to help guide them.

[sonarmark]

Shipmates, Allow me to share with you a "case study".

Out of the 78% of denials a large percentage of them are caused when a member does not even know they are in trouble, so when they say on their clearance that they have substantial debt, DONCAF assumes they are lying trying to hide it, you almost can't comeback from misleading them, I have seen some sailors who had sizeable debt but were forthcoming on their clearance still keep it.

Anyway to the case study, one of my sailors joined went to "A" School and then BUD/S. He didn't make it through and was assigned to my ship, on the ship his clearance was revoked, because he had some debt and some of his fathers debts were reflecting on his credit report, which he had never seen. To make matters worse moving to so many commands in just a year or two of service he never received notice so he thought he was good to go. We got his clearance and his financial problems repaired but after he had been ordered to convert to another rate, fortunately his appeal delayed that order.

He was a really sharp Sailor and I was proud to serve with him.

Young folks should be required in NMT or Bootcamp to print their credit report and get instruction on how to read it. Wouldn't that be great?

[HMC8404]

Interesting story Mark. Wow have things changed. One of my collateral hats was that of my command's Financial Specialist. I had to put people who's creditor's called the command on budgets. But we never looked at credit reports back then. And its so true about leaving commands and losing track of debts.

Its a whole new ballgame you're in compared to what some of us dealt with. My hats off to you.

[HMatb]

The US as a whole should be teaching this subject in junior high. IMHO, it should be parents responsibility to teach their kids about these things, about all things relating to being a responsible adult, unfortunately, parenting is lacking in our country as well. Its a shame we have to 'raise' these new recruits when they first enlist, but that is what we do, that is why we are the Navy.

[sonarmark]

I like the thought HMatB "it should be parents responsibility to teach their kids about these things, about all things relating to being a responsible adult"

But you cannot be responsible unless you are “able to respond”, my mom taught me everything she knew, how to get into debt, and how to work your rear off and still have little to show for it. I could hold her responsible, but what was she taught?

Someone in some generation has to be the transition figure, changing the family pattern. Being financially responsible is tough and requires delayed gratification.

Sadly, some of us get married and have children long before we understand how to be independent “responsible” again “Response-able” adults. I am comforted to know that you have such a clear view as a Seaman, I am sure you will avoid these pitfalls.

[SRLAMPE]

Hi everyone, I was hoping someone might be able to help in regards to my current DONCAF security clearance denial. I just found out the other day that my recruiter pushed me through Boot camp without doing my security clearance for being a Corpsman. I'm in C-School as of now and DONCAF denied me due to having $30k in debt. Prior to enlistment I was current on 95% of it but making only ends meet. I was told by the Security Officer at NSHS, CA that I have to mitigate the charges against me now. I have been trying to find out as much information as possible on this but not many people know what is going to happen to me. I have only 1 more week to appeal the charges against me and I'm currently trying to find an attorney who will file Chapter 7 Bankruptcy for me as I am only an E1 who cannot afford to set up payment plans with all the different creditors. Do any of you know what might happen in this kind of situation? I want to make things right and had intention just prior to enlistment of doing Bankruptcy but I figured it would be better on waiting till I was at a duty station for more than 3 months since a BK takes about 6 to discharge.

[adcantu]

Hey SRLAMPE, sorry to hear of your troubles. I don't know enough about these things to be of any official help. But one thing I would like to suggest, have you tried getting help from Navy Marine Corps Relief Society? They have financial counselors and advisers that could help you with your debt problems.

[dvldocjoe]

The first thing you need to do is go through the three major credit report companies;

A. Equifax
B. Transunion
C. Experian

to get a copy of your credit report with scores.

These reports will give you a list of how much is owed to what company with an address and phone number. Take the information and try to neogotiate reduced payments with reduced interest rates. Remember that one missed or late payment affects your scores. You can obtain one of these free of charge by showing them a denial letter for an application of credit.

You can use an online lawyer referal service and there is a referal service phone number for San Diego attorneys who might be able to help.
Hope this helps.

[8404]

SR:

At the beginning of this thread is a NAVADMIN which directs you to Navy Fleet and Family Support Center (FFSC) (https://www.nffsp.org/skins/nffsp/home.aspx) for assistance. FFSC works in conjunction with the following OPNAV Instruction.

Become familiar with OPNAV INSTRUCTION 1740.5B - United States Navy Personal Financial Management (PFM) Education, Training, and Counseling Program (http://doni.daps.dla.mil/Directives/01000%20Military%20Personnel%20Support/01-700%20Morale,%20Community%20and%20Religious%20Serv ices/1740.5B%20CH1.pdf)and then locate your COMMAND FINANCIAL SPECIALIST (CFS) for assistance and guidance!

[HMC-FMF-PJ]

I am only an E1 who cannot afford to set up payment plans with all the different creditors.

Why do I have the strong feeling that your 'I cannot afford payments' mindset is based on your personal assumptions and not do to conversations and negotiations with your creditors....

Have you called your creditors to discuss payments plans?? Simply opening the lines of communications with the creditors will often defuse the situation or at least buy you more time. You may be surprised the results you can get from working directly with each creditor. They will often agree to modify the terms of your debt and payments. (Working with a debt collector on the other hand can be a pain in the @$$) Bad debts cost them money, too, and they will probably get more if they work with you in your efforts to pay off your debts than if they force you into bankruptcy or have to hire a debt collector. By talking to each of your creditors and working out some sort of payment schedule tailored to your financial situation, you should be able to get back on your feet and avoid filing for bankruptcy.

Have you asked for a reduction of the finance charges/interest rate? Getting rates down to 10% to 12% is not unusual when seeking debt help. Many companies often agree to reduce or eliminate interest and fees or even remove charges from your bill. If they give you trouble tell them you'll have to transfer to a credit card company with more attractive rates and more cooperative attitude.

Have you discussed debt settlement or made a settlement offer? Some companies may sometimes forgive part of what is owed in order to collect the rest of the debt. I had a friend that worked in collections for a company and she could wipe away up to 40% of the bill without supervisor approval. Believe it or not, that is sometimes the best deal for the company. They would rather get 60 cents on the dollar than hire a debt collector just to get 40 cents on the dollar or have you file bankruptcy for potentially zero cents on the dollar.

If the customer service representative says "I can't do that", you need to tell them "put me on the phone with the person that can do it." If the representative answering the phone (or calling you) will not work with you, ask to speak with a supervisor or manager.

Have you sought consumer credit counseling from either a military office or reputable civilian organization? Have you looked at debt consolidation? (Beware of hack debt consolidation con games) Have you looked at hiring an attorney or representative to negotiate a debt management plan or debt settlement deal instead of bankruptcy? Have you figured out a budget that fits your current income and includes paying back the debt you owe? (Do you have a draft budget that would keep you out of financial trouble in the future if you file for bankruptcy?) Have you changed your spending habits yet? Are you only buying “I need” and “I must” while rejecting purchases of “I want” and “I could”? Is your entertainment and dating budget near zero dollars?


Don't be tempted by quick or easy solutions at eliminating debt. Do not believe persons who promise 'miracle cures' for bad debts; don't let anyone tell you they can cure your problems without any consequences. Getting out of debt takes hard work, planning, and sacrifice. Some counselors who advertise 'miracle cures' and quick fixes may be little more than a con artist or unscrupulous hacks who prey on people in financial trouble and only serve to make your situation worse. Filing bankruptcy is not always the best solution and could end up costing you more in the long run.

[HMC-FMF-PJ]

Here is a site to start doing research

http://www.navysecurity.navy.mil/doncaf/doncaf-clnc.htm

See SECNAV M-5510.30 Sections 8-5 and 8-6 for additional information.

Find out why you require a secret security clearance. Your process and argument/justification may vary significant based on the reason for your security investigation. Are you in a special program, slated to man a billet handling classified data, etc. I do NOT think this issue has anything to do with your job as a Corpsman or training as a Corpsman.

Homeland Security Presidential Directive 12 (HSPD-12) requires everyone who obtains a Common Access Card (CAC) to undergo proper identity vetting. The identity vetting process is basically identical to the Personnel Security Investigation (PSI) for a Secret security clearance. DoN CAF grants the highest clearance allowable by the investigation. Even though a Secret clearance is not required, the PSI most often supports at least a Secret clearance so therefore, that's the clearance the DoN CAF often grants. This does not mean you will be give access to classified material but if your job position requires that access then you will be eligible to easily finalize the clearance process to obtain that access.

If all you are doing is vetting your identity or determining suitability for enlistment, the process should be "easier" than obtaining access to classified material. Your indebitness may prevent a security clearance but I do not think they will AdminSep you out of C-School and the Navy (however you might not survive Peform-To-Serve)


http://cac.mil/Getting.html
A next-generation CAC can only be issued once:
() A Federal Bureau of Investigation (FBI) fingerprint check has been completed and approved
() A National Agency Check with Inquiries (NACI)* background security check is in the process of being completed (*Note: Since the NACI process can take up to 18 months, an individual may be issued a CAC before the process is completed. However, if the NACI process is completed and a person does not get "cleared," his or her CAC will then be revoked.)

[HMC-FMF-PJ]

National Agency Check with Local Agency and Credit Checks (NACLC).

The NACLC is the basic standard for determinations of eligibility to access Confidential and Secret classified information. The NACLC also provides the basis for military suitability determinations for Navy and Marine Corps enlisted members and officers. The NACLC includes a NAC, credit bureau checks covering all locations where the subject has resided, been employed, or attended school for the past seven years, and checks of law enforcement agencies having jurisdiction where the subject has resided, been employed, or attended school within the last five years. A NACLC is required for each enlisted member of the Navy and Marine Corps, including Reserve components, at the time of initial entry into the service. NACLCs are also conducted at five-year intervals for personnel with Secret security clearance in Special Access Programs (SAPs) and those performing EOD or Personnel Reliability Program (PRP) controlled duties.

View the attach file of Appendix G showing the financial criteria.


When information of security concern becomes known about an individual who is currently eligible for access to classified information, the adjudicator should consider whether the person:
a. Voluntarily reported the information,
b. Was truthful and complete in responding to questions,
c. Sought assistance and followed professional guidance, where appropriate,
d. Resolved or appears likely to favorably resolve the security concern,
e. Has demonstrated positive changes in behavior and employment,...


Conditions that could mitigate security concerns include:
a. The behavior was not recent;
b. It was an isolated incident;
c. The conditions that resulted in the behavior were largely beyond the person's control (e.g., loss of employment, a business downturn, unexpected medical emergency, or a death, divorce or separation);
d. The person has received or is receiving counseling for the problem and there are clear indications that the problem is being resolved or is under control;
e. The affluence resulted from a legal source; or
f. The individual initiated a good faith effort to repay overdue creditors or otherwise resolve debts.

[HMC-FMF-PJ]

I was told by the Security Officer at NSHS, CA that I have to mitigate the charges against me now..

"mitigate" is not the same as "resolve"

You should be working feverishly to reduce the severity of your debt, constantly moving towards swiftly clearing up your financial obligations but that does not mean to rush in blindly or act hastily.


I have only 1 more week to appeal the charges against me and I'm currently trying to find an attorney who will file Chapter 7 Bankruptcy for me as I am only an E1 who cannot afford to set up payment plans with all the different creditors.


Filing the paperwork or writing your letter of intention to appeal the decision does not mean your financial matters must be resolved within one week.

Simply declaring bankruptcy may actually work against you in this case. If you declare Chapter 7 bankruptcy to wipe your debt clear then, in my mind, you are demonstrating "A history of not meeting financial obligations" and "Inability or unwillingness to satisfy debts". I think that would likely backfire on you if you are trying to fix your adverse background investigation.

If you declare Chapter 13 bankruptcy, your debt gets restructed but you still pay your bills with your E1 paycheck, so what's the point of declaring bankruptcy??

[SRLAMPE]

Thank you to all who replied. I got all three credit reports and will try contacting all the creditors tomorrow to see if they are able to accept small payments.

[HMC-FMF-PJ]

Aim higher than that and try to get some compromise and cooperation. Shoot for the stars and try to negotiate the best deal possible.

Review your bills and recent account statements so you are familiar with the specifics before you call.

Do not just wing it and fly blind. Build a basic outline/script of what you are going to say before you call. Figure out some terms and conditions that would benefit you and develop a list of recommended changes.

Then call the company. Determine if you need to speak to a specific office or if the general customer representative will suffice. Tell them you are having trouble but that you want to be responsible and do the right thing. Ask what they can do to help you pay your bill. Let them show their cards first and try to negotiate an even better deal.

Lower the finance/interest rate being charged
Adjust minimum payment required
Cancel a fee or forgive a finance charge
Rework payment schedule (adjust due date, payment cycle, respite, delay, etc)
Discount or additional rate reduction for automatic payment or payrole allotment
Whatever you can get that benefits your circumstances and lowers your costs

[dvldocjoe]

If you neogotiate smaller payments with these companies, please make sure to get your new payment amounts submitted to you IN WRITING clarifying all terms. As Clancy says "If it wasn't written down, it never happened."

Make sure you read all of the fine print associated with these terms and they are what you agreed to before you sign the dotted line.

[HMC-FMF-PJ]

Another option is to have a parent or other person call the company to negotiate a settlement. Something along the lines of:

I know my son has an outstanding debt with you that he has not paid off and I want to take care of it. I am willing to make a lump sum payment to clear his bill but I am only willing to spend $$$$$$ (start at 60% to 40% of what you owe).


Your parent (advocate) can negotiate from a position of strength with somewhat of a take it or leave it attitude. They can bend a little if they like, but they can also hang up when they want. Many company's may have a "something is better than nothing" attitude and jump at the option to clear their books with a 60%, 50%, or even 40% partial payment. If the company is unwilling to move, then hang up. As the bill goes unpaid, time goes by, and your FICO continues to drop - the company may likely change its mind when approached again later.

This works much better if the advocate can afford to make a lump sum payment of the agreed amount but it is sometimes possible for the third party to negotiate a payment plan Or the advocate might negotiate a balance transfer (from your overdue account to the advocate's account) that clears your account. A lump sum payment will clear the debt and close the book. It is by far the better negotiating option however, not everyone has that sort of money laying around. Any sort of payment plan might also add your advocate's name to the debt and make them liable for its repayment like they were co-signing a loan. (Don't screw over your advocate by dumping your debt on them)

You can negotiate a private plan with your advocate to fund/repay whatever the advocate provides the debtor to clear your account.

In the meantime I hope you have changed your ways and stopped spending more than you make so you simply do not dig another financial hole that will need to be fixed in the future. Make sure your budget includes a savings plan and an emergency fund. (Plan for unplanned exspenses)

Debt is seldom about how much money you make. Debt is most often about how much money you spend.

[HMC-FMF-PJ]

Another interesting and informative segment on PBS. (You might want to check on that interest free emergency loan mentioned in the report)


Military Debt Protection Could Hold Lessons for Congress, Consumers
A special collaboration between the NewsHour and Frontline looks at how a military program aims to protect consumers from amassing too much debt.
http://www.pbs.org/newshour/bb/business/july-dec09/credit_11-24.html

LOWELL BERGMAN: Here at the Point Loma Naval Base in San Diego, California, everyone working on this nuclear submarine requires a security clearance. And the single biggest reason sailors fail to get their security clearance is debt, involving credit cards, cash advances, and other consumer loans.

Navy Captain Mark Patton: When you get a security clearance, your credit rating is actually a very important part of that. And it looks to see if you could be susceptible to bribery or espionage. If you look at the history of espionage, it's generally all about money.

LOWELL BERGMAN: In 2005, the military realized it had a problem. The number of personnel unable to get their security clearance because of severe debt had skyrocketed to over 2,500.


MP3 Audio: http://newshour-tc.pbs.org/newshour/rss/media/2009/11/24/20091124_credit.mp3

Streaming Video: http://www.pbs.org/newshour/video/module.html?mod=0&pkg=24112009&seg=4



LOWELL BERGMAN: The military has solved that need for cash by offering their own emergency loans for their service members.

And they gave you an interest-free loan.

AIRMAN ASHLYN TRACY: Correct, which you have to pay back over a 10-month time increment.



JIM LEHRER: Frontline takes a broader look at consumer credit later this evening. For more on credit cards, follow a link from our Web site, NewsHour.PBS.org, to theirs.

http://www.corpsman.com/forum/showthread.php?p=93881#post93881