Military Couple Looking for Help
Date: Sun, 07/12/2009 - 08:33
My wife and I joined a debt management company about 6-7 months ago. We've been making the payments, save for a month where our car blew up and we needed to get it fixed, but we don't seem to be making a whole lot of headway with our debts. We still have overdue charges on our accounts, stuff like that. My wife has had some health issues that have had her in and out of work since then as well, but she's now found a work-at-home position that appears to have us headed in the right direction.
I don't want my security clearance being affected by this in any way, and I'm not sure that it can be. I was just re-investigated for a clearance when I hit my 10-year point, which was before we started this debt management program, so my understanding is that I might be clear on that front. We're currently on a controlled tour, and our time to PCS is going to come up here in early-to-mid 2010. . .don't want to find out that we're screwed or anything like that. I also don't want it to affect my promotion to TSgt, which I anticipate happening in February.
Can my clearance be affected? Depending on the response, can someone recommend a course of action here?
Thank you very much in advance for any help or advice. Anything that anyone can tell us is appreciated.
As far as I know, most of the clearance denials are due to finan
As far as I know, most of the clearance denials are due to financial reasons. This is because, it is generally held that if you are deeply in debt, you may involve yourself in illegal acts in order to pay off the debts.
I think that you should contact your creditor and settle your debts somewhere between 30 and 40% of the outstanding amount and pay it off, so that it gets reflected in your credit report as "settled".
That sounds like a pretty damn good idea. So how, exactly, do
That sounds like a pretty damn good idea.
So how, exactly, do I go about doing that?
Using settlement, you will have to have fallen behind in payment
Using settlement, you will have to have fallen behind in payments and will have 30/60/90/120 late pays, and even charge offs on your credit report.
You will have to be very aggressive in how you approach coming up with the funds for settlement inside of 7 months, which is the time remaining until Feb.
It can take 60 days for a tradeline to report a zero balance after a settlement is funded. You therefore have 5 months.
If you are current now, and it sounds like you are, the best deals are going to be at 5 months.
So, for you, based on what you outlined, you need to be ready to fund lump sum settlements, all at once, in 5 months.
Doable? Absolutely. If you can come up with the funds to do it. If you are uncertian you will be able to, risking pay grade and advancement may not be worth it.
Perhaps you should consider toughing it out until after the promotion window and re-evaluate then.
Mileage may vary
