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 called into “The Ramsey Show” this week to share his financial nightmare, an RV loan with sky-high interest that's costing him hundreds in wasted payments every month.

A Costly Lesson In High-Interest Debt

The caller, Jack, told hosts Ken Coleman and Jade Warshaw that he financed a $60,000 RV on a 15-year loan at 18% interest. He admitted it was supposed to be a temporary housing solution while saving for a home, but it quickly turned into a trap.

"The interest is $800 a month, and only 50 bucks goes to the principal," Jack said. "It'll be like 16 months before I even scratch the surface under what I borrowed."

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Warshaw reacted with disbelief. "Wow. Why'd you do that?" he asked.

Jack said he bought the RV when he was earning just $2,000 a month. Even he isn't sure how the loan was approved. Now earning about $4,000 a month as a truck driver, he's realizing how bad the decision was.

He's already paid off all other debts, including student loans and credit cards, but the RV remains a major problem. He currently owes $48,000, while a dealership only offered $31,000 for a trade-in. Private buyers might pay around $38,000, still leaving a $10,000 gap.

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Ramsey Team Urges Quick Action

Warshaw advised him to sell the RV as soon as possible, even if it means taking out a small personal loan to cover the difference. “You’re going down from $48,000 of debt to $10,000 of debt. I’m going to take that deal every time,” she said. “There’s not a worse loan than the one you have.”

Coleman agreed, saying time was working against Jack because the RV was a depreciating asset. Warshaw clarified that this wasn’t about taking on new debt for lifestyle purposes: “He’s not taking a loan to go into debt. He’s taking a lesser loan to get out of debt.”

Jack said he’d been trying to rent out the RV to offset costs, but the hosts warned that waiting would only result in more value loss.

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Hard Lessons At 20

Reflecting on his mistake, Jack said, “Don’t get the dealership markups. Don’t get the warranty stuff. Don’t buy new. Ask someone older than you.”

Story Continues

Coleman told him not to see it as a life-ruining decision but as a costly education. “You did a little bit of research and you found out that buying an RV to live in, or buying anything that goes down in value, is not a good idea,” he said.

By the end of the call, both hosts praised Jack for learning his lesson early and for his determination to fix the mistake.

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