S
ean called into The Ramsey Show with a painful debt story: he and his wife own a fifth‑wheel RV that’s now worth only half what they paid. They bought the $100,000 vehicle on a loan, lived in it for a while, then decided to settle down and buy a house. When they tried to sell the RV, they discovered they still owed $80,000 on it while its market value had dropped to $40,000, leaving them $40,000 upside down.

    He tried private sales and approached dealerships. A dealer last year offered $54,000, which would still leave them $25,000 in negative equity, so they declined. This year the offer fell to $40,000, a price that “hurts,” said co‑host John Delony. Sean explained that he and his wife earn about $180,000 together but have only $1,000 in savings. On top of the RV loan, they carry $25,000 in credit‑card debt and a $7,000 personal loan.

    Rachel Cruze advised that the best move is to sell the RV now, take out a loan for the $40,000 gap, and then use that money to tackle the remaining debt. She urged a frugal lifestyle—“beans and rice”—to free up cash for repayment. Delony called the RV a “stupid tax,” while Cruze reminded Sean that motorized vehicles depreciate rapidly. “Anything with motors and wheels is just all the way down,” she said.

    Both hosts emphasized learning from this mistake and avoiding repeating it. “Everyone does stupid stuff,” Cruze warned, “but it’s kind of stupid to keep doing the same thing over and over.” Delony added that if they commit to a disciplined plan for 18 months, they could eliminate all debt. “You can do it. You’ll be debt‑free in no time. Let’s get after it.”