Marko Hakamma, moderator on the ClearanceJobsBlog, recently reported that financial troubles are still dominating the number one slot for reasons that applicants are denied security clearance eligibility. Credit card debt, loan defaults, and overall bad money management are lurking issues for security clearance holders, as well. One blog subscriber is up for renewal on their Secret clearance and writes on the discussion board:
Currently going up for a renewal of a secret clearance for the Air Force. First clearance was granted in 2013 while I was 17 and getting ready to ship out in June of that year for basic. No criminal, drug, alcohol issues or tax issues.
Issues stem from financial problems I caused myself due to being irresponsible and having an immature mindset about money. Was a young, enlisted member and made little money at the time while living on the west coast. Instead of being responsible I made poor choices.
Had 5 accounts in collections with each amount less than $2500. All accounts are paid and no longer delinquent. Then had two charge offs for a combined amount of about $2,300. Only two collections still appear on reports across the three credit bureaus showing 0$ balance. I have documentation for all accounts showing paid. Issues were back in 2018-2019. I have had made on time payments for the last three years. Will list every account regardless of showing or not showing on credit report.
After doing some growing up and realizing that having a child like mentality when it comes to money or any major things in your adult life is not the way to go, it has changed my mentality in many aspects of life. At some point in your life, you have accepted responsibility of your actions and I only wished I had reached that conclusion with myself sooner and probably would have never put myself in that situation in the first place. Currently in a really good spot as far as my finances and it’s been really refreshing try to put that past and issues behind me. I used to be embarrassed by and I’ll admit I still am a little, but I also am motivated to never do that again.
I wanted to take care of these issues not because of my clearance but just to fix my overall situation in life. I am currently engaged getting ready to start a family hopefully soon and I just want someone my future family and wife can look up to and be proud of.
FINANCIAL CONSIDERATONS AS AN ADJUDICATIVE GUIDELINE
Security clearance applicants or holders with current eligibility who are financially strained are thought to potentially participate in illegal means to make more money. Situations that serve as red flags for this adjudicative guideline include: a pattern of not meeting financial commitments; crimes like embezzlement, theft, fraud, or tax evasion; ignoring debts; unexplained wealth; or issues related to gambling.
The rule of thumb with most of the guidelines, including (F), is that behaviors can be mitigated if they are not recent, they are outside of the individual’s control (e.g., job loss, medical emergencies/death, or divorce), if there are clear actions taken to solve the issue, or if the person started payments to pay overdue debts.
In past cases, we’ve seen applicants with debts totaling much higher than $12,500 (and higher than $50,000) be mitigated – the key is that you continued to make your payments and have not repeated the behavior.
Much about the clearance process resembles the Pirate’s Code: “more what you’d call guidelines than actual rules.” For this reason, we maintain ClearanceJobsBlog.com – a forum where clearance seekers can ask the cleared community for advice on their specific security concerns. Ask CJ explores questions posed on the ClearanceJobs Blog forum, emails received, and comments from this site. This article is intended as general information only and should not be construed as legal advice. Consult an attorney regarding your specific situation.Â
