FORT KNOX, Ky. — For the military, obtaining and maintaining a security clearance is essential for accessing classified information and fulfilling roles related to national security. However, financial problems can put security clearance at risk.
Debt, poor credit and finance mismanagement are serious concerns for Soldiers seeking or maintaining security clearances. According to the U.S. Department of Defense, all DOD personnel now receive continuous security vetting https://www.defense.gov/News/News-Stories/Article/Article/2800381/all-dod-personnel-now-receive-continuous-security-vetting/.
Fortunately, Soldiers experiencing financial difficulties have access to a valuable resource at the Army Community Service (ACS) Financial Readiness Program. Before it becomes an issue, make an appointment to take care of financial issues.
How financial issues impact security clearances
- Excessive debt
Outstanding debt, especially if it is in collections, can signal financial instability. Soldiers in the Army must manage their finances responsibly. Unresolved debt may raise concerns about a Soldier’s ability to handle sensitive information https://www.annualcreditreport.com/index.action.
- Bankruptcy
Filing for bankruptcy may indicate poor financial mismanagement. While it does not automatically disqualify a Soldier, the Army will carefully examine the circumstances surrounding it and assess whether the Soldier has taken steps to correct the situation https://www.govregs.com/regulations/expand/title32_chapterI_part147_subpartA_section147.8#regulation_7.
- Credit card debt
Crucial factors for security clearance eligibility are having good financial judgment and the ability to manage stress. Excessive credit card debt may be a concern of financial problems. Soldiers who carry high balances on their credit cards may do so because they are not managing funds. To see how credit card debt affects you, use the line of credit calculator found here https://finred.usalearning.gov/ToolsAndAddRes/Calculators/Loan.
- Garnishments and liens
Garnishments and liens are legal actions that have been taken against an individual for non-payment of a debt. These items are usually a red flag for security clearance investigators. These types of legal actions can suggest that a Soldier is having financial difficulties, which could affect their reliability and trustworthiness https://www.servicememberscivilreliefact.com/blog/how-to-garnish-servicemembers-salaries/.
The role of Army Community Service Financial Readiness
Counselors can assist before there are issues that raise concern. By working with a counselor, you can develop a personalized plan to manage debt. We can also assist you in pulling your credit report, understanding the report, and addressing any negative marks found. Finally, we can assist with establishing a way to live within your means and become financially healthy and security-clearance eligible https://www.jagcnet.army.mil/Sites/LegalAssistancePublic.nsf/16150C64F4B3A7B485258BB0005EDA20/$File/Security%20Clearance%20Revocation.pdf.
- Proactive financial management
By working with a counselor Soldiers can take a proactive approach to resolving financial issues before they affect security clearances. Early intervention is important and showing you are actively working to fix finances before it is mandated demonstrated responsibility.
- Documenting financial efforts
Counselors can show Soldiers how to keep records of their financial efforts. If a Soldier is addressing debt or improving their credit proper documentation can be essential when explaining their financial situation during a clearance review.
- Improving financial literacy
By participating in ACS financial classes and counseling services Soldiers can learn to better manage their finances, reducing the change of future financial instability that could jeopardize their clearance.
- Demonstrating financial stability
Efforts to resolve financial issues are viewed positively. Showing what steps are being taken to stabilize their finances are less likely to dace clearance issues.
Maintaining a security clearance is crucial for many Soldiers, but financial issues can jeopardize that clearance. Excessive debt, bankruptcy, garnishments and poor credit history can raise concerns that can make a Soldier vulnerable to exploitation, compromising national security.
However, you do not have to face these issues alone. Army Community Service (ACS) Financial Readiness Program can assist in addressing financial concerns, build stability and improve chances of retaining security clearances.
Call today 502-624-5989/8391 for your personal plan.
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