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? for DR fans...help for my brother

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    ? for DR fans...help for my brother

    Hopefully, my brother is about to receive a great job however the only downside is his employer is concerned about his credit because he has to get a secret clearance for his new job.

    All of his credit problems arise from a divorce and lack of income. Hopefully the income will be taken care of with the new job.

    I listen to Dave Ramsey quit a bit but I would not consider myself a follower of his debt reduction plan. My brother recently picked up FPU and TMM and is starting to work himself out of the terrible hole he has gotten himself into.
    I know Dave says never borrower money again. However if my brother could borrower $6K to pay 50 cents on the dollar for a judgment lien to payoff the debt would DR be opposed to it? I know Dave says you should pay your debts but if there an ethical reason to believe that the judgment was for too much and you really and honestly don't believe you own $12Kwould DR be opposed to taking a loan to pay off the loan and save yourself $6K?

    I guess this is where I disagree with DR. Any chance to lower your debt even if it means taking out a loan is better than paying $6K more just on the principle that you are never going to borrow money again.

    What says you?

    #2
    Yes, Dave is ok with borrowing to lower debt. On many occations, he will tell someone to sell a car and borrow the upside down difference to lower the overall debt. In some cases, he will say to put some debts on credit card if it will better the situation.

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      #3
      On the other side of the situation, a person's credit actually does not really factor into security clearance investigations. Significant debt/money problems will (potential for blackmail or selling secrets), but even then, they aren't always something that will totally block someone from receiving a 'secret' clearance. It will be looked at, but if the debts are under control, it shouldn't be a significant issue for him.
      Last edited by kork13; 01-29-2009, 07:58 PM.
      "Praestantia per minutus" ... "Acta non verba"

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        #4
        Originally posted by kork13 View Post
        On the other side of the situation, a person's credit actually does not really factor into security clearance investigations. Significant debt/money problems will (potential for blackmail or selling secrets), but even then, they aren't always something that will totally block someone from receiving a 'secret' clearance. It will be looked at, but if the debts are under control, it shouldn't be a significant issue for him.
        OP quote: "...judgment lien..."

        That will.


        Also... (Note: 'a' and 'c')


        Conditions that could raise a security concern and may be disqualifying include:

        a. A history of not meeting financial obligations;

        b. Deceptive or illegal financial practices such as embezzlement, employee theft, check fraud, income tax evasion, expense account fraud, filing deceptive loan statements, and other intentional financial breaches of trust;

        c. Inability or unwillingness to satisfy debts;

        d. Unexplained affluence;

        e. Financial problems that are linked to gambling, drug abuse, alcoholism, or other issues of security concern.


        Source: Defense Security Services (DSS)


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          #5
          Hello Toast

          I'm a new member of the forum, but a long time DR fan.

          First, what you describe isn't "going into debt" because the debt is already owed. He is simply transferring the debt from one place to another. Dave has never criticized this if it is an opportunity to lessen your overall debt burden. (not to be confused with surfing CC balances or debt consolidation)

          Second, if the person owed the money is willing to accept .50 on the dollar, it is their right to do so and that is all your brother is obligated to pay. If he wants to go back later and pay the other half out of a sense of moral obligation, he can always do so.

          Hope that helps.

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            #6
            I appreciate your help in this matter

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