Mismanagement Of Personal Finances And Its Impact on Naval career

[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) 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 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]

Originally Posted by SRLAMPE

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.