Financial boot camp pays off for three military families
Published: December 16, 2008
Updated: December 18, 2008
WASHINGTON When the Color of Money Military Challenge began 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 about exposing his financial mistakes to readers nationwide.
But George and his wife, Kim, newlyweds when they started the challenge, nonetheless wanted help so bad that they agreed to open their books to me and enlist in my financial boot camp.
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.
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.
George Colon is a changed man. Together, he and his wife earn a six-figure income. Kim, 44, is a senior master sergeant in the Air Force. She's been in the military for 20 years. George served 22 years in the Army. He now works as a contract manager for a security company.
The couple started the challenge with a little more than $30,000 on eight credit accounts. They were spending more than their net pay every month.
Our conversations about budgeting and debt and long-term financial planning turned him around. The Colons no longer spend more than they make every month and have paid off nearly $15,000 in consumer and tax debt.
Tarek and Evibeth Bathiche, both 25-year-old Army personnel stationed at Fort Meade, Md., started the challenge with $27,600 on six credit cards. They have just $4,500 left to pay off.
By February 2009 they will be free of all their credit-card debt. They made the greatest dent in their debt by taking $10,000 of Tarek's $11,000 re-enlistment bonus and applying it all to the credit-card debt.
The Holmeses, Amber, 38, and Trenton, 39, had the hardest time during the challenge. Like millions of other Americans, they are caught in the housing quagmire. Trenton is an aircraft mechanic and tech sergeant with the Air Force. Amber is a paralegal specialist with the federal government.
Much of their financial trouble stemmed from a second home they've been unable to rent for enough money to cover the mortgage and property taxes. As a result of the shortfall and other expenses, they were spending about $400 more a month than they brought home.
Once they began to budget, they cut expenses and paid off about $12,000 in consumer debt.
"Overall I feel good," Amber said. "I definitely know that we are doing things more aggressively than we would have if we hadn't participated in the challenge."
Michelle Singletary welcomes comments and column ideas but cannot offer specific personal financial advice. Readers can write to her c/o The Washington Post, 1150 15th St. NW, Washington, DC 20071, or e-mail her at
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