I'm $40k Upside Down On An RV

Summary

The Ramsey Show Highlights – Episode Summary

Title: I'm $40k Upside Down On An RV
Date: November 29, 2025
Featured Hosts: Rachel Cruze, Matt (Ramsey Network)
Caller: Sean

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Episode Overview

This episode centers on Sean, a caller facing a $40,000 shortfall (negative equity) after purchasing a fifth-wheel RV that dramatically depreciated in value. Sean seeks advice from Rachel Cruze and Matt on whether to keep or offload the RV, and how to tackle the resulting debt. The conversation provides practical, straightforward financial guidance and encouragement, while emphasizing personal responsibility and learning from financial mistakes.

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Key Discussion Points & Insights

Sean’s Situation

• RV Purchase Decision

  • Sean and his wife financed a $100,000 fifth-wheel RV to support her travel nursing career.
  • Purchased a home after deciding to settle; now need to eliminate the RV.

• Financial Details

  • Current RV loan balance: $80,000
  • Current RV value: $40,000 (per “blue book” estimate)
  • Sean is $40,000 upside down (owes $40k more than the RV’s market value).
  • Initial sale attempt to dealership last year would have resulted in $25,000 negative equity; resale value has since plummeted.
  • Household income: $180,000/year
  • Emergency savings: $1,000

  "We owe 80,000 on it right now, and it’s currently worth 40." — Sean [01:04]

Host Guidance and Reactions

• Immediate Advice

  • Rachel advises Sean to sell the RV quickly, accept the loss, and pay off the $40k difference either through savings or by taking out a smaller loan if absolutely necessary.
  • Both hosts reinforce that acting now is preferable to letting the RV depreciate further.

  "Honestly, Sean, at this point, I would... if someone will take it, that's great. You're just gonna have to pay the difference." — Rachel Cruze [01:24]

• "Stupid Tax" Concept

  • Matt introduces Dave Ramsey’s concept of the “stupid tax,” referring to learning expensive lessons from mistakes.

  "Have you ever heard Dave talk about the stupid tax? That might just be this one, brother." — Matt [02:33]

Depreciation Reality and Missed Opportunity

• Impact of Delayed Sale

  • Sean reveals last year he passed on a $54k dealership offer, not wanting the $25k loss; this year, the offer dropped to $40k, doubling the negative equity.

  "I got a little dumb with it. Last year I went to go sell it...they were going to give me 54...And then I wouldn't go do it this year. And they're like, oh, we'll give you 40." — Sean [02:51]

  • Hosts emphasize the severe, ongoing depreciation of vehicles, especially RVs.

  "Anything with motors and wheels is just all the way down." — Rachel Cruze [03:11]

Debt Breakdown and Strategy

• Additional Debt

  • Credit cards: ~$25,000
  • Personal loan: $5,000–$7,000
  • Mortgage (no details provided)

• Total Non-Mortgage Debt: Approximately $70,000 (including RV negative equity)

• Debt Payoff Approach: 'Beans and Rice'

  • Rachel and Matt prescribe extreme frugality: “beans and rice, rice and beans” diet, paired with an aggressive payoff timeline of 18–24 months.
  • Strong encouragement to avoid lifestyle inflation and unnecessary spending.

  "Give yourself 18 months and y’all just knock it out and just do nothing with your lives but work and eat at home and pay this debt off." — Rachel Cruze [04:22]

• Cutting Up Credit Cards and Learning From Mistakes

  • Rachel stresses completely abandoning credit cards and personal loans after the debt is cleared to prevent repeating financial mistakes.
  • The hosts clarify that while mistakes happen, it’s “stupid to go back and redo stupid stuff over and over again.”

  "Once you guys get through this and pay it off, be done. Be done with it. Learn." — Rachel Cruze [04:45]

Reflection and Accountability

• Motivation and Encouragement

  • Sean admits he and his wife have faced debt before and dug themselves out, but fell back into old patterns.
  • Hosts motivate Sean to break the cycle, highlighting the difference between real estate and RVs (appreciating vs. depreciating assets).

  "We did it because we were actually treating it as a house for the RV..." — Sean [05:03]
  "Yeah, but it's a terrible investment. Real estate goes up, RV goes down." — Rachel Cruze [05:09]

  • Matt reflects on human nature—wanting something so badly that logic gets ignored.

  "We wanted this to be true, so we figured out a way to make it true. And that choice just came up back and bit you to the tune of 40 grand." — Matt [05:14]

  • The episode concludes with encouragement and reassurance of the caller's ability to become debt-free.

  "Totally. Y'all can do it. Y’all be debt free in no time. Let's get after it." — Matt [05:23]

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Memorable Quotes & Moments (With Timestamps)

• "That’s a kick in the guts, man." — Matt [00:21]
• "We owe 80,000 on it right now, and it’s currently worth 40." — Sean [01:04]
• "If someone will take it, that's great. You’re just gonna have to pay the difference." — Rachel Cruze [01:24]
• "Have you ever heard Dave talk about the stupid tax? That might just be this one, brother." — Matt [02:33]
• "Last year…I was upside down like $25,000. And…this year…they’re like, oh, we’ll give you 40. And I was like, oh, that's hurt." — Sean [02:51]
• "Anything with motors and wheels is just all the way down." — Rachel Cruze [03:11]
• "Give yourself 18 months…just do nothing with your lives but work and eat at home and pay this debt off." — Rachel Cruze [04:22]
• "It’s kind of stupid to go back and redo stupid stuff over and over again. Like, we don’t want to do that." — Rachel Cruze [04:45]
• "We wanted this to be true, so we figured out a way to make it true. And that choice just came up back and bit you to the tune of 40 grand." — Matt [05:14]

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Important Timestamps

• 00:06 – Caller Intro: Sean explains the RV purchase and the upside-down loan.
• 01:00 – Debt Details: Current loan, value, and attempts to sell.
• 01:24 – Main Advice Begins: Rachel outlines next steps for selling and managing the debt.
• 02:33 – "Stupid Tax": Hosts contextualize Sean's experience as an expensive life lesson.
• 03:11 – Depreciation Talk: Realities of vehicle values and urgency to sell.
• 04:22 – Payoff Strategy: Beans-and-rice prescription and motivational advice.
• 05:14 – Final Encouragement: Reflection on choices and breaking the cycle.

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Summary Takeaway

This episode provides a succinct, real-world example of the pitfalls of financing depreciating assets like RVs, urging quick, decisive action to minimize losses. Hosts Rachel Cruze and Matt blend empathy with tough love, assigning accountability but also hope. The overarching theme: financial mistakes are part of the journey, but wisdom is learning—and refusing to repeat—them. Listeners are reminded to focus on enduring financial habits, frugality, and intentionality to regain and retain control of their financial lives.

Transcript

[Narrator]

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[Sean]

So my wife was a travel nurse, and we financed an RV, fifth wheel. And I'm currently upside down on it by $40,000.

[Rachel Cruze]

Oh, man.

[Sean]

Getting rid of it.

[Matt]

Dude, that's a. That's a kick in the guts, man.

[Sean]

Yeah. And so we bought a house because we were going to. We decided to settle down and we're going to get rid of the RV. Well, when we go get rid of the RV, we found out that we were 40,000 upside down.

[Rachel Cruze]

Okay, who. Can I ask, who. Who gave you the estimate of what it's worth today?

[Sean]

I blue booked it.

[Rachel Cruze]

Okay. Okay.

[Sean]

And I've tried private settlement. I've tried going to a dealership. Dealership, of course, can get. Give you.

[Matt]

Yeah.

[Sean]

Very low number.

[Rachel Cruze]

What did y'.

[Sean]

All.

[Rachel Cruze]

What did you all buy it for?

[Sean]

Bought it for $100,000.

[Rachel Cruze]

And it's worth now because I'm sure you have to pay for it.

[Sean]

We've had it for a couple years. We owe 80,000 on it right now, and it's currently worth 40.

[Rachel Cruze]

Man. Do you have any savings?

[Sean]

Thousand dollar baby emergency fund.

[Rachel Cruze]

Okay. How much do you guys make a year?

[Sean]

180,000.

[Rachel Cruze]

Okay, well, that's a good thing. I mean, honestly, Sean, at this point, I would. I would still, you know, if someone will take it, that's great. You're just gonna have to pay the difference. And a part of me would love for y' all to save up and have that cash versus going and taking out a smaller loan. But if you. If you did, if you had it for sale, and for some reason, someone like, I don't know, messaged you and was like, oh, great, I would love to buy this thing. Then you'd have to go get a small loan for the difference.

[Matt]

Well, it wouldn't be small and be a $40,000 loan.

[Rachel Cruze]

Well, compared to 80,000.

[Matt]

That's true.

[Rachel Cruze]

I'm trying to help Sean out. I'm saying it's no big deal. You can do this.

[Matt]

Have you ever heard Dave talk about the stupid tax.

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[Rachel Cruze]

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[Narrator]

And tracking purchases is just.

[Rachel Cruze]

It's so freeing to know exactly where your money is going.

[Sean]

It just takes that stress out of the day to day life.

[Narrator]

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[Rachel Cruze]

You can do this.

[Matt]

Have you ever heard Dave talk about the stupid tax?

[Sean]

Yes.

[Matt]

That might just be this one, brother.

[Sean]

Yeah, Yeah.

[Matt]

A very painful, painful 40, 000. I mean, I can't even. That's a lot of money, dude. But that hurts. But there's not a quick other path.

[Rachel Cruze]

It feels. Yeah, it feels better than 80.

[Sean]

Yeah, I. And I kind of got. I was. I got a little dumb with it. Last year I went to go sell it to a dealership, and they were going to give me 54. And I was like, well, it's kind of still a little low. I'm upside down. Like $25,000. And then I wouldn't go do it this year. And they're like, oh, we'll give you 40. And I was like, oh, that's hurt.

[Matt]

Yeah, those things depreciate off.

[Rachel Cruze]

I know. Anything with motors and wheels is just all the way down. Yeah, I mean, that's just what you're gonna have to do. Sean, I hate to say it, but I would rather pay off 40,000 than 80. So I hope you get it sold. And I would just put the 40,000 like a. Like baby step two. What other debt do you guys have?

[Sean]

So, of course we'll get the house. And then I've got a couple of personal loans, a couple credit cards.

[Rachel Cruze]

How much are those.

[Sean]

Credit cards, roughly? About 25,000. Personal loan I've got. That's about. Well, I Pay. It's like 5, $7,000 for the personal loan.

[Rachel Cruze]

Okay. And that's it.

[Sean]

Yes. Okay.

[Rachel Cruze]

So, yeah, yeah, It'll be around $7,000.

[Sean]

Beater card. Yep.

[Rachel Cruze]

That's good. That's good. Yeah. So 70,000. But you guys, you make a ton of money. 180, right? I mean, before taxes. So, yeah, I mean, I would force myself, Sean, you know, Golly, I would try to live on nothing.

[Matt]

24 months.

[Rachel Cruze]

This is beans and rice. Rice and beans. Yeah. I mean, like. Oh, easily. Yeah, for sure. Give yourself 18 months and y' all just knock it out and just do nothing with your lives but work and eat at home and pay this debt off.

[Sean]

All right, Matt, I'm killed. Leave, leave. Struggled before. And we've, you know, pulled ourselves out of it before, so. And this kind of was.

[Rachel Cruze]

Okay, let's don't do that anymore. Let's learn. Yeah, let's cut up the credit. Cut up the credit cards. No more personal loans. Like, once you guys get through this and pay it off, be done. Be done with it. Learn. Like, everyone does stupid stuff, so there's nothing. There's no shame in that. But it's kind of stupid to go back and redo stupid stuff over and over again. Like, we don't want to do that.

[Sean]

And. And we. We did it. We did it because we were. We were actually treating it as a house for the rv because.

[Rachel Cruze]

Yeah, but it's a terrible investment. Real estate goes up, RV go down. So you guys need to do some more digging.

[Matt]

It's one of those things, like, we wanted this to be true, so we figured out a way to make it true. And that choice just came up back and bitch you to the tune of 40 grand.

[Rachel Cruze]

You guys can do it.

[Matt]

Totally all can do it. You all be debt free in no time. Let's get after it.

[Narrator]

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