We’re $100K in Debt and Living in a Camper
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How did Travis end up $100,000 in debt and living in a camper?
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Normal is broke and common sense is weird, so we're here to help you transform your life. From the Ramsey Network in the Fairwinds Credit Union studio, this is the Ramsey Show. The phone number to jump in today, 888-825-5225. 888-825-5225. Alongside The really, really sharply dressed George Kim. I always like to see what adjective you're going to use on me today. You know, I got distracted from the adjective. I was looking at that shacket. That's a well-appointed shacket, George, as always. I'm Ken Coleman. We're here together for you. Looking good as half the battle, Ken. It really is. So you're prepared as well. All right, let's go to Travis in Huntsville, Alabama. Travis, how can we help today?
Hey, I am in $100,000 of debt, and I'm 22. I have two kids, but I make about $70,000 a year.
Okay. Tell us more. What kind of debt is the $100,000? Break it down for us.
Well, the first one was my, I guess, my 20-year-old idiot purchase, which was, at the time when I first got it, it was about a $75,000 truck from a loan rolled over. Now it's about at $60,000 a day. $1,200 a month on it. My second one is a $23,000 camper, started at $30,000, pay that about $500 a month on it. And then the last one is a car for my wife, which I currently owe about $16,000 on.
Okay. And what is your goal today? What's the heart of the question?
Well, I guess... So me and my wife have been talking a lot about getting rid of the truck, because the reason we have the camper and the truck to begin with is because we were traveling on the road. I worked for a renovation company, renovating government buildings, made a lot of money the first year. Contracts died out, just slowed down. Had to find another job back home where we had a little more stability. But we still live in the camper, and then the truck is... the way to move the camper around. Got it.
So you're living in the camper full time? You're not renting? You don't have a home? Okay.
No, we're not renting. And we actually don't pay for rent at the campground because we volunteer for state parks.
Cool. So that kind of covers the fee. They kind of make it a wash.
And I'm guessing you don't move around much anymore. You're not moving this camper much.
No, not very far. Just around like, you know, like an hour from Huntsville. Right now we're an hour, so we're kind of far, but we can move back in a couple months.
Okay. And your wife is at home with the kids? Yeah. Not working outside the home? Okay. So $70,000 is what we're making. We've got $100,000 in debt. Have you looked into what the truck is currently worth, what the camper is currently worth? You sold it privately.
Yes, sir. So the private value on the Kelley Blue Book website is $36,000. So it's just I'm really underwater.
So 24 underwater on the truck. And then what about the camper?
The camper, I don't know how much they depreciate. Honestly, I haven't looked into it. They depreciate a whole lot.
That's for sure.
What are practical steps to sell the truck and stop sinking money into the camper?
You think it's worth 10 or 15? 20?
I might be able to get 10 out of it. And that would leave me at $13,000.
Yep. So total, doing the math, you are $37,000 underwater on these vehicles. Meaning you cannot get rid of these until you come up with the difference somehow to clear the title. Yes, sir.
There's two ways you can do that. I have a question. As I'm listening here to George talk with you, have you run the numbers on the most affordable rent? Because you're already living in a trailer. So you make $70,000. It's not chump change. What would rent cost you?
There's some places where I think we could get it for $1,000, but some of those places with kids, I just wouldn't feel safe putting them in, and I know my wife would.
Okay, but you went to the worst common denominator. So what I'm asking you is I would never recommend you put your family in a place where your kids are unsafe. So let's re-ask the question. What does rent look like in a place where you don't feel like your kids are under threat?
I would say maybe somewhere between $1,400 to $1,600.
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Chapters
7 chapters
1
How did Travis end up $100,000 in debt and living in a camper?
0:04–3:42
2
What are practical steps to sell the truck and stop sinking money into the camper?
3:42–36:20
3
Should I pause Parent PLUS payments to attack credit card debt?
36:20–1:02:41
4
How should I handle inherited property with boundary disputes — sell or renovate?
1:02:41–1:07:54
5
What questions should I ask about AI being used in tax preparation?
1:07:54–1:09:32
6
What are realistic options for getting out of an underwater car loan fast?
1:09:32–1:15:07
7
Can I move for better opportunities for my kids and still retire early?
1:15:07–2:08:23