JBER agencies show troops ways to save cash Published Jan. 8, 2015 By Chris McCann JBER Public Affairs JOINT BASE ELMENDORF-RICHARDSON, Alaska -- On many military installations, it's easy to tell when a unit has returned from a deployment - new cars abound on the roads as cash-flush service members enjoy the fruits of their labor. But many Soldiers and Airmen can get in over their heads with credit - and the overwhelmingly young demographic means many don't know or practice good financial strategies. There's help available for service and family members on Joint Base Elmendorf-Richardson. Army Community Services and the Air Force Military and Family Readiness Center can assist with everything from accessing credit reports to helping build nest eggs. "The first thing is to put yourself in a good position financially," said Doug Armon, the ACS Financial Readiness Program manager. "Have an emergency fund and build a nest egg. That's the number one issue I see. Often, service members are hit with an emergency and then turn to high-interest debt. Everyone needs a thousand or two thousand dollars set aside in case bad things happen, and there are many ways to make that savings happen." The second step is twofold, Armon said. "The first part of that is to determine what your goals are, because your goals dictate where and how you're going to save or invest," Armon said. "If your goal is to buy a house or car, then a retirement savings account isn't a good choice - so that's of paramount importance. The second part is to consider that very few people stay in the military until retirement. Are you prepared for that transition out of the military? What are you doing for your retirement?" In a nutshell, Armon said, everyone needs to eliminate debt and build savings in order to be on solid financial footing. "We work day in and day out with service and family members, getting credit reports and assisting them with both of those issues," Armon said. Many people have credit issues, some of which they may have long forgotten about, but those issues can cause plenty of trouble - resulting in denial of security clearances, high interest rates on large purchases, and extra deposits needed for off-base housing. All of the financial services personnel are certified financial planners and credit counselors, and offer all the same services as any credit counseling organization. "The only thing we can't do is accept money," Armon explained. "You can't give us payments to give to creditors like you can with some agencies. But we can negotiate settlements with creditors and help you come up with a workable plan." Credit agencies will often settle unsecured debt - the kind that has no collateral, like a vehicle - for 50 or 60 percent, Armon said. "The only way they make money is if they get money from you - and they can't get it if you're not willing to pay it," he said. In other words, if a service member is willing to work with the agency, they'll often compromise on the amount and clear the black mark off your credit report. Spc. Sandra Ervin, a generator mechanic with the Warrior Transition Unit, went to Armon for assistance with an old debt. "I wasn't really comfortable with calling them, so he did the negotiation on the phone, Ervin said. "He made an offer, they accepted, and it was done in five minutes. Two days later I had paperwork from the company saying I was clear. It was a big relief; I'd gone to a briefing about it and tried doing it myself, but I was still frustrated, so I wanted to see how it was done in case I ever have to do it again." The agencies can walk people through the entire process of debt repair, from getting an initial credit report and explaining what it all means, all the way to drafting final letters of closure. Not only is the service as good as an outside firm, it's also free - which helps keep money in the service member's pocket. Saving money can be easy in the military, Armon said. "Many service members go to the buy-now, pay-later furniture stores, and end up paying three to four times as much as they would've paid in cash", he said. "But they could go to one of the thrift stores on the installation, and E-4s and below get furniture for free. It's used, but if you're looking for a couple of dressers for the kids, it's perfect. Absolutely take advantage of the things here - even changing your oil or tires at the Auto Hobby Shop saves you 25 or 30 dollars." Another great way to save is the Commissary, Armon pointed out. Shoppers can save 30 to 40 percent on their grocery bills by taking advantage of an often-overlooked benefit. Taking honest stock of where money goes for a month is also a great tool, he said. "Sometimes people don't realize that they're spending $300 on cigarettes each month, because they buy by the pack," Armon said. "Or they don't add up the cost of eating lunch at a fast-food place every day. If you pay attention to where your money goes, those little things add up fast." Saving can be done through the Thrift Savings Program or the Savings Deposit Program, or through any bank - although the military programs offer more interest and some added benefits such as tax-free status depending on whether a service member is deployed. "The biggest point with savings is to put blocks in your way to accessing it," Armon said. "If you can access it online or with a debit card, there's too much temptation. Savings accounts should be restricted to face-to-face withdrawals to make sure you're thinking about it." The military offers plenty of resources for service members and families to repair and build a strong financial foundation, and both ACS and M&FRC offer not only personal services but also briefings and classes about understanding leave and earnings statements, financial readiness before deployments, financial re-integration, and other military issues. "I spent 22 years in the military," Armon said. "I have a degree in adult education and counseling, but I also learned through the school of hard knocks, and I've been on the other side of the desk, needing assistance. I know the things that can go wrong. We can help."