Dave Ramsey Caller Says He’s Paying $800 A Month In Interest On A $60,000 RV Loan At 18% For 15 Years. ‘Wow. Why’d You Do That?’
A 20-year-old truck driver from Indianapolis chimed in:The Ramsey ShowThis week he’ll share his financial nightmare, which is his RV loan. very high interest this is costing him hundreds of dollars in wasted money every month.
Caller Jack told the homeowners: Ken Coleman And Jade Warsaw He said he financed a $60,000 motorhome with a 15-year loan at 18% interest. He admitted that this was supposed to be a temporary housing solution while he saved for a house, but it quickly turned into a trap.
“The interest is $800 a month, and only $50 of that goes towards the principal,” Jack said. “It will take me about 16 months to even scratch the surface of what I’m borrowing.”
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Warshaw reacted in disbelief. “Wow. Why did you do that?” he asked.
Jack said he bought the trailer when he was only making $2,000 a month. Even he isn’t sure how the loan was approved. He now earns about $4,000 a month as a truck driver and realizes how bad his decision was.
He’s already paid off all his other debts, including student loans and credit cards, but the trailer remains a big problem. While he now owes $48,000, a dealer offered only $31,000 for the trade-in. Private buyers can pay around $38,000 but still leave a $10,000 gap.
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Warshaw advised him to sell the caravan as soon as possible, even if it meant taking out a small personal loan to cover the difference. “You go from $48,000 in debt to $10,000 in debt. I’ll always take that deal,” he said. “There is no worse credit than the one you have.”
Coleman agreed, saying that time was against Jack because the trailer was a depreciating asset. Warshaw explained that this isn’t about taking on new debt for lifestyle purposes: “He’s not taking out loans to get into debt. He’s taking out fewer loans to get out of debt.”
Jack said he tried to rent the caravan to offset costs, but his landlords warned that waiting would only lead to further depreciation.
Jack, reflecting on his mistake, said: “Don’t understand dealership markings. understanding warranty supplies. Don’t buy new. Ask someone older than you.”
