Less Debt? Hooah!

When the Color of Money Military Challenge began earlier this year, George Colon was not happy.

Not about the thousands of dollars in credit card debt he and his wife had accumulated, and not thrilled about exposing his financial mistakes to readers nationwide.

But George and his wife, Kim, newlyweds when they started the challenge, nonetheless wanted help so badly that they agreed to open their books to me and enlist in my financial boot camp.

"We have been flying on a high-speed spending roller coaster ever since we wed," Kim Colon wrote to me. "My husband and I really have no idea how to rectify this situation on our own. Please help!"

The Colons were one of three military couples who promised to spend 2008 following the individual plans I had developed to help them get out of debt.

The challenge focused on military personnel because of growing concern about poor financial planning among service members. Personnel with severe financial problems can lose their security clearances or face sanctions. Financial worries can affect their ability to perform their job.

The Government Accountability Office found that 20 percent of junior enlisted soldiers reported struggling to make ends meet.

The recession has only worsened the problem. Congress was so concerned about service members getting relief that a new law was passed in October that accelerates the process for military personnel who need to file for bankruptcy. The National Guard and Reservists Debt Relief Act of 2008 exempts reserve personnel from going through a time-consuming means test before filing for bankruptcy.

It's not as if top brass hasn't tried to aid families. The military has created personal financial management programs to provide service members with financial literacy training and help in avoiding or fixing money problems. Unfortunately, not enough personnel take advantage of the service, often fearing that exposing their financial troubles might affect their career advancement, according to the GAO.

So imagine how hard it must have been for the three couples participating in this challenge. They received some ridicule and criticism from friends, co-workers and readers and yet they persevered, collectively paying off about $50,000 in debt.

That brings me back to George. The final day we sat down to discuss the financial boot camp I put his family through, he was bouncing around happily like Tigger from "Winnie the Pooh."

George is a changed man.