My Job Went to China and I Don’t Want to Ruin My Security Clearance With My Debt. – Jeff

“Dear Steve,

After 21 years with the company where I thought I retire my position was eliminated when our manufacturing processing was moved to China. Went from an $85k income in 2005 to $42k now. In my arrogance I thought I would be back and the same level within a couple of years. Over the past 7 years we have amassed approximately $62k.

Chase #1 – $9k (2.99% until paid in full)
Chase #2 – $8k (2.99% until paid in full)
Chase #3 – $6.5k (12.99%)

Discover #1 – $14k (16.9%)
Discover #2 – $6.5k (9.9%)

AT&T – $23k (16.99%)

Home – Value = $105k / Balance = $80k / Payment = $575
Rental – Value = $65k / Balance = $40k / Payment = $415

> Me = $44k
> Spouse = $32k
> Rental = $4.8k

Are there legitimate businesses who offer ‘signature’ loans for people with good credit history? Last check my credit score was in the mid to high 600 due to a poor debt-to-income ratio. I have never defaulted on a debt I owed.

Are the businesses claiming to reduce your debt legit? I know they want you to forgo making payments which I do not feel comfortable doing. First, I created the debt and feel responsible but…have no control on the interest rates the banks charge. Second, I don’t want to ruin my credit rating; I am a contractor for the military and can risk loosing my clearance.

So…how does one get out from under the debt umbrella when there income and debt are neck and neck?


Dear Jeff,

There are some options for signature loans like and Obviously the interest rate charged will be higher than your low rates.

It’s interesting that you may be shying away from bankruptcy as a result of your security clearance. The military reportedly views being maxed out as a greater security risk than bankruptcy.

When it comes to getting out of debt, one thing is for certain, you can’t approach it with any limits and preconceived notions before you better understand all of your avenues to dealing with this.

I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.

Then use the free How to Get Out of Debt Calculator to review your options.

Once you’ve identified a company you want to work with, then follow my step-by-step guide on how to check out a debt relief company.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

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