Dave Ramsey Caller Is $40,000 Upside Down On A $100,000 RV. ‘It’s A Terrible Investment. Real Estate Goes Up, RVs Go Down’
A man named Sean called:The Ramsey ShowHe has a painful financial problem: $40,000 upside down in a fifth-wheel trailer that he and his wife bought for $100,000.
Sean said his wife used to be a travel nurse, so financed the RV and lived there for a while. But after they settled down and decided to buy a house, they went to sell the caravan and realized how much its value had fallen. “We’re currently $80,000 in debt and it’s currently worth $40,000,” Sean said.
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He said he tried private sales and talked to dealers, but nothing came close to what they needed. Last year a seller offered $54,000, which would have left them $25,000 upside. He turned down the offer and this year the offer dropped even further. “Then this year I went to do it and they said, ‘Oh, we’ll give you 40,'” he said.
Co-host “This hurts” John Delony in question. “But there is no other quick way.”
Sean said he and his wife earn about $180,000 a year but have only $1,000 in savings. In addition to the RV loan, they also carry about $25,000 in credit card debt and a $7,000 personal loan.
co-host Rachel Cruze He told her the best option was to sell the RV now, take out a loan for the $40,000 difference, then throw everything at that and the rest of her consumer debt. “I’d try to live on nothing. Beans and rice. Rice and beans,” he said repeatedly Dave Ramsey‘s famous advice It’s about living frugally.
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While Delony called the trailer a classic example of what Ramsey called a “stupid tax,” Cruze reminded Sean that vehicles lose value quickly. “Anything with a motor or wheels is all the way down.”
Sean admitted that they justified the caravan purchase by treating it like a home. But Cruze didn’t exaggerate: “It’s a terrible investment. “Real estate is increasing, caravans are decreasing.”
Both hosts encouraged Sean to learn from the experience. “Everybody does stupid things,” Cruze said. “But it’s kind of stupid to go back and do stupid things over and over again. We don’t want to do that.”
Delony said that if they recover for 18 months, they can completely erase their debts. “You can all do this. You’ll be debt-free in no time. Let’s go for it.”
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