Debt and financial issues are now the number one reason for security clearances to be denied for revoked. Debt alone isn't likely to result in clearance denial, but the cause of the debt, and an individual's efforts to solve problems, will be taken into account. More on delinquent debt and security clearances: http://www.clearancejobs.com/cleared-news/39/the-impact-of-delinquent-debt-on-security-clearances

1. Financial Issues and Security
Clearances
Top financial issues and what to do about them

2. Why is debt a problem?
Financial considerations come into play in security
clearance adjudication because most individuals who
betray their country do so for financial gain.

3. Top Financial Issues
The major financial issues are:
1. Compulsive/addictive behavior
2. Deceptive/illegal financial practices
3. Unexplained affluence
4. Delinquent debt
Most financial issues come down to high debt to income
ratio and excessive indebtedness

4. Delinquent Debt: Adjudicative factors
In making a clearance decision, these factors are
considered:
• Cause of debt
• Response to debt
• Amount of debt
Cause is generally more important than amount,
because it points to trustworthiness and judgment.

5. Response to Debt
Classic indicators of irresponsible or unethical
behavior are:
• Changing addresses without notifying creditors
• Failure to take reasonable measures to pay or reduce
debts
• Knowingly issuing bad checks
• Increased credit card use immediately before filing for
bankruptcy

6. What Can I Do if I Have Financial Issues?
1. Deal with any financial issues responsibly. Seek
professional assistance and credit counseling if
necessary. Declaring bankruptcy will not automatically
cause a clearance to be denied or suspended.
2. Debt alone will not automatically cause a clearance
denial, even excessive debt. What matters is that
you’re able to explain your current debt situation and
have a plan for paying it off. The type of debt (credit
card versus mortgage) also matters.
3. If you experience financial issues while possessing a
security clearance, report any ongoing issues with your
security officer.

7. For more information visit:
http://www.clearancejobs.com/cleared-news/39/the-
impact-of-delinquent-debt-on-security-clearances
Find your next cleared job at www.clearancejobs.com