Big Debts are costing troops their Security clearances

Yahoo! News
Troops' debt a growing security concern

By THOMAS WATKINS, Associated Press WriterThu Oct 19, 2:23 PM ET

Thousands of U.S. troops are being barred from overseas duty because
they are so deep in debt they are considered security risks, according
to an Associated Press review of military records.

The number of troops held back has climbed dramatically in the past few
years. And while they appear to represent a very small percentage of all
U.S. military personnel, the increase is occurring at a time when the
armed forces are stretched thin by the wars in Iraq and Afghanistan.

"We are seeing an alarming trend in degrading financial health," said
Navy Capt. Mark D. Patton, commanding officer at San Diego's Naval Base
Point Loma.

The Pentagon contends financial problems can distract personnel from
their duties or make them vulnerable to bribery and treason. As a
result, those who fall heavily into debt can be stripped of the security
clearances they need to go overseas.

While the number of revoked clearances has surged since the beginning of
the Iraq war, military officials say there is no evidence that service
members are deliberately running up debts to stay out of harm's way.

Officials also say the increase has not undermined the military's
fighting ability, though some say it has complicated the job of
assembling some of the units needed in Iraq or Afghanistan.

The problem is attributed to a lack of financial smarts among recruits;
reckless spending among those exhilarated to make it home alive from a
tour of duty; and the profusion of "payday lenders" — businesses that
allow military personnel to borrow against their next paycheck at
extremely high interest rates.

The debt problems persist despite crackdowns on payday lenders and the
financial counseling the Pentagon routinely offers to the troops.

Data supplied to the AP by the Navy, Marines and Air Force show that the
number of clearances revoked for financial reasons rose every year
between 2002 and 2005, climbing ninefold from 284 at the start of the
period to 2,654 last year. Partial numbers from this year suggest the
trend continues.

More than 6,300 troops in the three branches lost their clearances
during that four-year period. Roughly 900,000 people are serving in the
three branches, though not all need clearances.

The figures gathered by the AP represent just a piece of problem,
because the Army — which employs an additional 500,000 people and
accounts for the vast majority of the 160,000 U.S. troops in Iraq and
Afghanistan — rejected repeated requests over the past month to supply
its data, saying such information is confidential.

At Point Loma, Patton said clearance revocations in key areas such as
military police forces have gotten so common that he often looks for two
sailors to fill a single posting.

Still, Patton said he had never heard of anyone racking up bills to get
out of combat. "There are folks who find ways of avoiding being
deployed, as there always will be, but I've never seen any do it through
finances," he said.

Security clearances are revoked when service members' debt payments
amount to 30 percent to 40 percent of their salary. The exact amount
depends on the military branch.

There are three levels of clearance — confidential, secret and top
secret. Not all troops need clearance. Marine infantrymen don't, but
some Marine specialists, such as those in intelligence, do. So do many
jobs in the Navy and Air Force.

Financial problems are the overwhelming reason security clearances are
revoked. Other reasons include criminal activity, questionable
allegiance and ill health.

A key reason the military revokes clearances on financial grounds is the
fear that soldiers in debt might be tempted to sell secrets or equipment
to the enemy.

Also, "when they are over there fighting, we like them to have their
heads in the game," said Maj. Gen. Michael Lehnert, commander of Marine
Corps bases in the western United States. "We like to have them ... not
worrying about whether or not they are going to be able to make the
mortgage payment or car payment."

Members of the brass also blame runaway interest rates at payday lending
businesses, many of which are clustered outside bases around the
country. Several states have cracked down on payday lending practices,
and on Tuesday, President Bush signed legislation limiting how much
these businesses can charge military personnel.

Some personnel fall into debt upon returning from combat.

"It can be hard to cut that sense of elation and desire to live for the
moment," Lehnert said. "Some tend to get themselves overextended
financially."

Also, when they go to war, they get combat pay, and none of their income
is taxed. That can lead them to overspend when they come home.

Patton said that like other services, the Navy offers zero-interest
emergency loans. Also, military personnel commonly take money-management
classes as part of basic training.

"Every time we go in and do an indoctrination brief, there is
instruction or training in place to give them some of the pitfalls of
debt," said Terry Harris, a personal finance educator at the Pensacola
Naval Air Station in Florida. "We do inform them about the pitfalls of
security clearances being lost to that."

The increase in finance-related revocations could actually be a good
sign — it could reflect greater awareness among the troops, according to
Chief Master Sgt. Rodney J. McKinley, the Air Force's highest-ranking
noncommissioned officer.

"We have a few more people coming forward and saying, `Hey, I'm having
some financial difficulty and need help,' versus going down the other
path where they keep so quiet," McKinley said.

___

Associated Press Writers Pauline Jelinek in Washington, Melissa Nelson
in Pensacola, Fla., and Estes Thompson in Raleigh, N.C., contributed to
this report.

Copyright © 2006 The Associated Press. All rights reserved. The
information contained in the AP News report may not be published,
broadcast, rewritten or redistributed without the prior written
authority of The Associated Press.
Copyright © 2006 Yahoo! Inc. All rights reserved.

hogwash
stupid stuff and other colorful adjectives I can think of
BUY A HOUSE 125K avg
add a MODEST CAR 20K
that alone is 145k and monthly salary is what MAYBE 3K will all taxes gone
in warzone
who they trying to kid
there had to be other reasons for pulling clearance
I had one for over 20 years in NAVY if they used debt against me I would
have never had a clearance
I was 30K in debt when I joined
someone is blowing some or smoking some serious stuff in that article

--
Don
SEMPER VIGILIS
http://myweb.cableone.net/wxfreqrs/ REAL TIME WEATHER Pascagoula Ms
http://www.qsl.net/kb5fhx/index.html HAM RADIO
http://donsradio.spaces.msn.com/blog/PersonalSpace.aspx MY BLOG
My goal in life is to be as good of a person as my dog already thinks I am.

"Tiger" wrote in message
...


Yahoo! News
Troops' debt a growing security concern

By THOMAS WATKINS, Associated Press WriterThu Oct 19, 2:23 PM ET

Thousands of U.S. troops are being barred from overseas duty because they
are so deep in debt they are considered security risks, according to an
Associated Press review of military records.

The number of troops held back has climbed dramatically in the past few
years. And while they appear to represent a very small percentage of all
U.S. military personnel, the increase is occurring at a time when the
armed forces are stretched thin by the wars in Iraq and Afghanistan.

"We are seeing an alarming trend in degrading financial health," said Navy
Capt. Mark D. Patton, commanding officer at San Diego's Naval Base Point
Loma.

The Pentagon contends financial problems can distract personnel from their
duties or make them vulnerable to bribery and treason. As a result, those
who fall heavily into debt can be stripped of the security clearances they
need to go overseas.

While the number of revoked clearances has surged since the beginning of
the Iraq war, military officials say there is no evidence that service
members are deliberately running up debts to stay out of harm's way.

Officials also say the increase has not undermined the military's fighting
ability, though some say it has complicated the job of assembling some of
the units needed in Iraq or Afghanistan.

The problem is attributed to a lack of financial smarts among recruits;
reckless spending among those exhilarated to make it home alive from a
tour of duty; and the profusion of "payday lenders" — businesses that
allow military personnel to borrow against their next paycheck at
extremely high interest rates.

The debt problems persist despite crackdowns on payday lenders and the
financial counseling the Pentagon routinely offers to the troops.

Data supplied to the AP by the Navy, Marines and Air Force show that the
number of clearances revoked for financial reasons rose every year between
2002 and 2005, climbing ninefold from 284 at the start of the period to
2,654 last year. Partial numbers from this year suggest the trend
continues.

More than 6,300 troops in the three branches lost their clearances during
that four-year period. Roughly 900,000 people are serving in the three
branches, though not all need clearances.

The figures gathered by the AP represent just a piece of problem, because
the Army — which employs an additional 500,000 people and accounts for the
vast majority of the 160,000 U.S. troops in Iraq and Afghanistan —
rejected repeated requests over the past month to supply its data, saying
such information is confidential.

At Point Loma, Patton said clearance revocations in key areas such as
military police forces have gotten so common that he often looks for two
sailors to fill a single posting.

Still, Patton said he had never heard of anyone racking up bills to get
out of combat. "There are folks who find ways of avoiding being deployed,
as there always will be, but I've never seen any do it through finances,"
he said.

Security clearances are revoked when service members' debt payments amount
to 30 percent to 40 percent of their salary. The exact amount depends on
the military branch.

There are three levels of clearance — confidential, secret and top secret.
Not all troops need clearance. Marine infantrymen don't, but some Marine
specialists, such as those in intelligence, do. So do many jobs in the
Navy and Air Force.

Financial problems are the overwhelming reason security clearances are
revoked. Other reasons include criminal activity, questionable allegiance
and ill health.

A key reason the military revokes clearances on financial grounds is the
fear that soldiers in debt might be tempted to sell secrets or equipment
to the enemy.

Also, "when they are over there fighting, we like them to have their heads
in the game," said Maj. Gen. Michael Lehnert, commander of Marine Corps
bases in the western United States. "We like to have them ... not worrying
about whether or not they are going to be able to make the mortgage
payment or car payment."

Members of the brass also blame runaway interest rates at payday lending
businesses, many of which are clustered outside bases around the country.
Several states have cracked down on payday lending practices, and on
Tuesday, President Bush signed legislation limiting how much these
businesses can charge military personnel.

Some personnel fall into debt upon returning from combat.

"It can be hard to cut that sense of elation and desire to live for the
moment," Lehnert said. "Some tend to get themselves overextended
financially."

Also, when they go to war, they get combat pay, and none of their income
is taxed. That can lead them to overspend when they come home.

Patton said that like other services, the Navy offers zero-interest
emergency loans. Also, military personnel commonly take money-management
classes as part of basic training.

"Every time we go in and do an indoctrination brief, there is instruction
or training in place to give them some of the pitfalls of debt," said
Terry Harris, a personal finance educator at the Pensacola Naval Air
Station in Florida. "We do inform them about the pitfalls of security
clearances being lost to that."

The increase in finance-related revocations could actually be a good
sign — it could reflect greater awareness among the troops, according to
Chief Master Sgt. Rodney J. McKinley, the Air Force's highest-ranking
noncommissioned officer.

"We have a few more people coming forward and saying, `Hey, I'm having
some financial difficulty and need help,' versus going down the other path
where they keep so quiet," McKinley said.

___

Associated Press Writers Pauline Jelinek in Washington, Melissa Nelson in
Pensacola, Fla., and Estes Thompson in Raleigh, N.C., contributed to this
report.

Copyright © 2006 The Associated Press. All rights reserved. The
information contained in the AP News report may not be published,
broadcast, rewritten or redistributed without the prior written authority
of The Associated Press.
Copyright © 2006 Yahoo! Inc. All rights reserved.

Remember a certain scumbag named John Walker?

On Fri, 20 Oct 2006 12:45:03 -0700, "Leadfoot"
wrote:

Remember a certain scumbag named John Walker?

The guy who started blending scotch?

Hang him.


Peter Skelton

"wxfreqrs" wrote in
:

hogwash
stupid stuff and other colorful adjectives I can think of
BUY A HOUSE 125K avg
add a MODEST CAR 20K
that alone is 145k and monthly salary is what MAYBE 3K will all taxes
gone in warzone
who they trying to kid
there had to be other reasons for pulling clearance
I had one for over 20 years in NAVY if they used debt against me I would
have never had a clearance
I was 30K in debt when I joined
someone is blowing some or smoking some serious stuff in that article


Well, you were probably one of those folks who shouldered their debt(s),
paid on time, and never let it become a problem. OTOH, there are those who
have gotten delinquent, and have considered or taken desparate measures to
attempt to pay them off.

My ex got us behind on a couple of loans (one of the reasons she's an ex),
and I was counselled about said delinquencies and their relation to my
clearance. This happened in the early 80s. Debt is a consideration for
keeping/pulling a clearance.

Dave in San Diego

"wxfreqrs" wrote in message
...
hogwash
stupid stuff and other colorful adjectives I can think of
BUY A HOUSE 125K avg
add a MODEST CAR 20K
that alone is 145k and monthly salary is what MAYBE 3K will all taxes gone
in warzone
who they trying to kid
there had to be other reasons for pulling clearance
I had one for over 20 years in NAVY if they used debt against me I would
have never had a clearance
I was 30K in debt when I joined
someone is blowing some or smoking some serious stuff in that article


Question: Did you pay your bills? The sailors I've seen lose their
clearances
lost them because they were in debt and refused to pay their bills.

The story is more than likely mis-leading, they left out the parts about
guys
not paying their bills.

BTW: You cannot find any homes near any US Naval bases for 125K,
Here in San Diego average home price is around 600K, I hear the Norfolk
area is high too.

Mark



--
Posted via a free Usenet account from http://www.teranews.com

"Mark Test" wrote in news:45397341$0$19719$88260bb3
@free.teranews.com:

BTW: You cannot find any homes near any US Naval bases for 125K,
Here in San Diego average home price is around 600K, I hear the Norfolk
area is high too.

You can still find houses in the Jacksonville area for that price.

Dave in San Diego
owns a house in Jax, too

Mark Test wrote:
Question: Did you pay your bills? The sailors I've seen lose their
clearances
lost them because they were in debt and refused to pay their bills.

The story is more than likely mis-leading, they left out the parts about
guys
not paying their bills.

BTW: You cannot find any homes near any US Naval bases for 125K,
Here in San Diego average home price is around 600K, I hear the Norfolk
area is high too.

You've got mostly younger adults who, from all indications, just don't
get as much education or mentoring in budgeting and not spending like
idiots, and we wonder why they end up to their noses in debt, although
in this age, we've also got more stuff that we've been taught to think
we need, like cellphones, broadband internet, Tivo, digital cable or
satellite, etc., that just didn't exist or was prohibitively expensive
back a decade or two ago.

The housing cost issue is an alarming one to me, too, and not only
because I was more or less forced to move my family out of DC Metro
because my wonderful 200%+ rate of appreciation on my property caused
my property TAX burden to overwhelm our income. Housing costs are
keeping our police, EMTs, and firefighters from being able to afford to
live in the neighborhoods that they protect in a lot of areas, and if
our servicemen can't afford homes in neighborhoods around bases, then
I'd say something is out of whack. Local governments and residents need
to remember that "affordable housing" doesn't equal slums and
closet-sized apartments.

"Jeb Hoge" wrote in message
oups.com...
The housing cost issue is an alarming one to me, too, and not only
because I was more or less forced to move my family out of DC Metro
because my wonderful 200%+ rate of appreciation on my property caused
my property TAX burden to overwhelm our income. Housing costs are
keeping our police, EMTs, and firefighters from being able to afford to
live in the neighborhoods that they protect in a lot of areas, and if
our servicemen can't afford homes in neighborhoods around bases, then
I'd say something is out of whack. Local governments and residents need
to remember that "affordable housing" doesn't equal slums and
closet-sized apartments.

I say let the housing market continue on its own.....lowering
taxes is what government can do to help us all out....there are
plenty of affordable houses out there.....find a market that
you can afford. As for us military, rent until you get stationed
in an area you can afford to buy.

Mark



--
Posted via a free Usenet account from http://www.teranews.com