Will StarCard debt interfere with re-enlistment?

SPC Cathy Goessman — Thu, 19 Nov 2020 18:24:06 -0500

I have StarCard debt. Currently on a payment plan which both parties have agreed to and I pay faithfully every month. When I called and talked to them today and mentioned I was trying to get back in the Army the guy said that I may have to pay off the entire StarCard balance before I can re-enlist since it's considered federal debt. Has anybody run into this or seen this cause problems? It's only a few thousand dollars but I haven't got that big of a lump sum.

Response by MAJ Javier Rivera made Nov 19 at 2020 7:45 PM

MAJ Javier Rivera — Thu, 19 Nov 2020 19:45:41 -0500

It shouldn’t be an issue since the debt is not, based on your statement, is not on default nor on collection.

Response by MSG Private RallyPoint Member made Nov 19 at 2020 8:59 PM

MSG Private RallyPoint Member — Thu, 19 Nov 2020 20:59:03 -0500

This is one of the reasons why I always answer with a NO when asked if I want a Star Card. And also why I usually tell people to never get one.

Response by SPC Jeff Ward made Nov 19 at 2020 9:47 PM

SPC Jeff Ward — Thu, 19 Nov 2020 21:47:47 -0500

It can, and it will definitely screw up your credit score if you don’t take care of it.

Response by SFC Private RallyPoint Member made Nov 19 at 2020 9:59 PM

SFC Private RallyPoint Member — Thu, 19 Nov 2020 21:59:26 -0500

Don't believe Bill collectors, their job is to get you to pay, or else get you to pay a little in order to obligate you and extend the statute of limitations for you. StarCard is not federal debt. Even your Government Travel Card is not federal debt. Your debt has been sold to a collection agency for a fraction of the amount you owe, usually pennies on the dollar. The collection agency, a civilian agency, now owns your debt. If you owed a federal debt the department of Treasury would garnish your tax returns and wages till it was paid.

Collection agencies will lie through their teeth to get you to pay because most of the debts they purchase never get settled, they in turn sell them cheaper to another agency who will try to collect the debt. As long as you're paying your bills on time you should have no issues.

Response by CSM Charles Hayden made Nov 19 at 2020 10:58 PM

CSM Charles Hayden — Thu, 19 Nov 2020 22:58:31 -0500

SPC Cathy Goessman Have you attempted to offer them a one time cash payment?

“Dave Ramsey”, an online financial Guru suggests offering a one-time cash payment for a signed cancellation of the debt. He strongly advises to not give any collection agency any of your account numbers. Sending them a certified check is a safe way to deal with those people. Only send a check after you have their acceptance of the amount in writing in your hands!

Response by SGM Brian Carter made Nov 19 at 2020 11:47 PM

SGM Brian Carter — Thu, 19 Nov 2020 23:47:53 -0500

Whoever told you that was either making shit up or out right telling lies.

Response by SGM Private RallyPoint Member made Nov 20 at 2020 12:19 AM

SGM Private RallyPoint Member — Fri, 20 Nov 2020 00:19:00 -0500

Be careful with these debt collectors. They are filth of the Earth and will say vile and unethical things to scare you into paying. That's not to say that you don't have to repay your debt, just that you should better understand your obligations and the debt collector's power under the law.

I recommend checking out Dave Ramsey, and his Total Money Makeover system. My wife and I have been following it for years and the rewards of living debt free cannot be overstated.

https://www.daveramsey.com/dave-ramsey-7-baby-steps

dave-ramsey-7-baby-steps

Response by SGT Private RallyPoint Member made Nov 20 at 2020 11:15 PM

SGT Private RallyPoint Member — Fri, 20 Nov 2020 23:15:03 -0500

Nope you're fine. It may come back to bite you if you try for a TS position later in your career though. Make your monthly payments and keep your nose clean if you plan go there in the future.

Response by SFC Private RallyPoint Member made Nov 21 at 2020 7:53 AM

SFC Private RallyPoint Member — Sat, 21 Nov 2020 07:53:21 -0500

If your Star Card has gone into collections, which it sounds like it has, that may effect your security clearance. Holding your clearance may effect what jobs you can reenlist for. These are case by case things and a letter from the Comander on if they feel you should keep your clearance and their thoughts on retention since they sign off on it is a good place to start.

Get with your Chain of command, retention, and S2 and get real answers.

Don't use credit cards with 23% intrest, whatever you plan on buying is not worth the interest.

Response by SSG Rajeev Kirpalani made Nov 21 at 2020 8:41 PM

SSG Rajeev Kirpalani — Sat, 21 Nov 2020 20:41:10 -0500

Honestly it would not be an issue, as your on a payment plan