A young woman named Ashton called “The Ramsay Show” seeking help with the financial troubles she’d fallen into last year. Their stories are left to personal finance experts Dave Ramsey Visibly shocked.
The couple, who were 24 when they bought their home, paid $115,000 for a fifth-wheel camper, thinking the payment would be cheaper than renting an apartment. “Oh my gosh,” Ramsey exclaimed when he heard the figure, but that wasn’t the end of it because the couple still owed $50,000 on a truck.
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Ramsey asked if they were still living in the camper. The answer made things worse. “No, we don’t,” Ashton admitted. “My mom has a rental house that’s now available for rent, so we’re living in the rental house now. Now all we have left is a camper and truck.”
A young couple realizes they’re turned upside down in a giant fifth-wheel camper and a truck they no longer live in. Together they made a lot of money, but the value of the loan dropped faster than they could pay it off. They called the Ramsay Show for advice. pic.twitter.com/8iJ1QvO6CP
She added: “We’re going through baby steps and we’re trying to figure out if it’s worth lowering wages until we get out of the upside down situation or selling first and then paying them while they’re upside down.”
When the numbers were released, things worsened. They owe $115,000 on the camper, but it’s only worth about $90,000 now. If they returned to Camping World, which sold them, the quote was only $63,000.
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The camper is not small either. It has a washer and dryer, a king-size bed, and has been described as a giant fifth wheel. The couple’s combined annual income is about $145,000.
Ramsey couldn’t believe they were approved for this type of financing at just 24 years old. “They loan you $115,000 to buy a camper,” he said in disbelief.
On top of that, they still owe $50,000 on the truck, which currently has a trade-in value of about $42,000. When co-hosting John Deloney He laughed out loud at the numbers. “I’m laughing with you, not at you, Ashton.” “No, no, I’m laughing at myself, too,” she replied.
Ramsay tells the hard truth: campers are losing value faster than their loan balances are declining. “The longer you wait to sell your campervan, and every day you wait, the gap between what you owe and what it’s worth gets bigger,” he said.
