A SMALL home owner has revealed her struggle after taking out a $115,000 mortgage before seeing the value of the asset decline.
Financial professional Dave Ramsey gave him some urgent advice.
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Ashton, from Auburn, Alabama, was called The Ramsey Show for help with your unusual financial dilemma.
She and her husband were in trouble after taking out a $115,000 mortgage on a van.
“It’s like an apartment on wheels,” Ashton said.
“It has a washer and a dryer, it’s a huge fifth wheel.”
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They initially intended to live there full-time as a tiny home, but instead moved into a rental property.
Now, they were covering their mortgage payment by renting it out on Airbnb.
However, the young couple feared rents would plummet in winter.
What’s more, they had a $50,000 loan to buy a truck that they used to pull the trailer.
Worse still, the trailer was now valued at just $90,000.
That means they owed $25,000 more than they were worth.
ACT NOW
Dave was shocked at the debt mess Ashton and her husband had managed to get themselves into.
He said acting quickly would be crucial to getting out of this.
“The longer you wait to sell the RV, every day you wait, the spread between what you owe and its value gets bigger.
“The value is falling faster than the loan balance,” he explained.
“Put it on sale – today!”
Dave also encouraged Ashton to speak to her creditor and file a lien on the remaining $25,000 she still owed.
The longer you wait to sell the RV, every day you wait increases the spread between what you owe and its value.
The value is falling faster than the loan balance.
David Ramsey
After that, he wanted her to sell the truck and turn it into a used vehicle for around $10,000.
“You can become completely debt-free if you take these steps,” he said.
Ashton isn’t the first caller Dave has helped get out of mounting debt.
See how his teachings helped one woman raise $234,000 in 31 months.
And find out what he advised a 46-year-old man with $42,000 in debt and no retirement to do.
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