In today’s financial climate, unresolved debt doesn’t just follow you—it can stop your career in its tracks, particularly if you hold or are applying for a security clearance. Financial issues remain one of the leading causes of security clearance denials and revocations. Understanding how your debt can affect your clearance status—and knowing what steps you can take to mitigate the risk—is critical.
The Link Between Debt and Security Clearances
Security clearances are granted based on an individual’s trustworthiness, reliability, and ability to protect sensitive information. When an individual faces excessive debt or demonstrates poor financial management, it raises concerns that they may be more vulnerable to coercion or unethical behavior.
In fact, according to the Defense Counterintelligence and Security Agency, financial considerations are consistently among the most common reasons for clearance denial or revocation.

Financial Red Flags That Can Threaten Your Clearance
Several types of financial behavior may jeopardize your ability to maintain or obtain a security clearance:
- Delinquent accounts: Unpaid or overdue bills reflect financial instability.
- High debt-to-income ratio: Owing more than you earn suggests poor financial judgment.
- Bankruptcy: While not automatically disqualifying, bankruptcy requires additional scrutiny.
- Liens and foreclosures: These major events often signal deeper financial distress.
- Gambling-related debt: This type of behavior can be particularly concerning to evaluators.
It’s also important to note that the context matters. Debt caused by unforeseen medical expenses, for example, may be viewed differently than debt resulting from reckless or habitual overspending.
Steps to Mitigate Debt Concerns
If you’re experiencing financial challenges that could impact your clearance, taking the following actions can help strengthen your case:
- Seek professional help: Our first suggestion (before considering additional steps) is to enlist legal support that specializes in debt as it related to security clearances, something National Legal has deep experience in.
- Establish a repayment plan: Even partial, consistent efforts to repay debts show accountability.
- Communicate openly: Be honest and transparent during the security clearance process.
- Document extenuating circumstances: If your financial trouble stems from unavoidable hardships, keep documentation to support your case.
Being proactive can make all the difference—not only in preserving your clearance, but also in building long-term financial security.

How National Legal Center Can Help
At National Legal Center, we understand how financial issues can directly impact your ability to do your job—especially when a security clearance is involved. Our legal team works with individuals across the country to resolve debt-related concerns through:
- Experienced representation: We help you navigate the security clearance process and defend your eligibility.
- Debt resolution strategies: We tailor plans to your situation, aiming to resolve debt in a manageable, sustainable way.
- Ongoing financial stability: We help you not only fix current issues, but also lay the groundwork for a financially secure future.
Whether you’re actively facing clearance review or simply want to get ahead of any potential issues, our team is here to help.
Sources:
- Defense Counterintelligence and Security Agency. (n.d.). Adjudicative Guidelines. Retrieved from dcsa.mil
- Military Money. (2022). Can You Get a Security Clearance With Bad Credit? Retrieved from militarymoney.com
- Federal Employee Education and Assistance Fund (FEEA). (2020). Finances and Security Clearances: What You Need to Know. Retrieved from feea.org
- Drug Enforcement Administration. (2018). Financial Instability and National Security. Retrieved from dea.gov
National Legal Center. (n.d.). Debt and Security Clearance. Retrieved from nationallegal.com
Ready to Talk?
If you’re worried that debt may affect your security clearance, don’t wait. Reach out to the legal team at National Legal Center for a free evaluation. Call 800-747-2614 or visit nationallegal.com to learn more.
Complete this form to schedule your free consultation.