A young woman named Ashton called into “The Ramsey Show” to get help with a financial mess they got into last year. Their story left personal finance expert Dave Ramsey visibly shocked.
The couple, who were 24 when they made the purchase, bought a fifth-wheel camper for $115,000, thinking the payments would be cheaper than apartment rent. “Holly Jesus,” Ramsey exclaimed when he heard the number, but that wasn’t the end of surprises as the couple also owed $50,000 on a truck.
Don’t Miss:
Ramsey asked if they were still living in the camper. The answer made things worse. “No, we do not,” Ashton admitted. “My mom has a rental house that became available, so we live in the rental house now. Now we’re stuck with a camper and truck.”
A young couple realized they’re deeply upside down on a massive fifth-wheel camper and a truck they no longer live in. Together they make good money, but the loans are dropping in value faster than they can pay them off. They called in to The Ramsey Show for advice. pic.twitter.com/8iJ1QvO6CP
“We’re going through the Baby Steps and we’re trying to figure out if it’s worth keeping the pay down until it’s out of the upside down or to sell and then pay on the upside down,” she added.
Things spiraled further when the numbers came out. They owe $115,000 on the camper, but it’s only worth about $90,000 now. And if they went back to Camping World, the same place that sold it to them, the offer was just $63,000.
Trending: Have $100k+ to invest? Charlie Munger says that’s the toughest milestone — don’t stall now. Get matched with a fiduciary advisor and keep building
The camper isn’t small either. It has a washer and dryer, a king-size bed, and is described as a massive fifth-wheel. Combined, the couple earns about $145,000 a year.
Ramsey couldn’t believe they were approved for that kind of financing at 24 years old. “And they loaned you $115,000 on a camper,” he said in disbelief.
On top of that, they owe $50,000 on the truck, which is currently worth around $42,000 on trade-in. When co-host John Delony heard the figures, he burst out laughing. “I’m laughing with you, not at you, Ashton.” “No, no, I’m laughing at myself too,” she answered.
Ramsey laid out the tough truth: the camper is losing value faster than the loan balance is going down. “The longer you wait to sell the camper, every day that you wait, the spread between what you owe and its value gets wider,” he said.
