The Ramsey Show

We’re $100K in Debt and Living in a Camper

February 4, 2026

Key Takeaways Copied to clipboard!

  • Living in a camper to avoid rent is not a sustainable solution when the associated vehicle debt ($1,200/month payment on a truck) is preventing overall debt freedom. 
  • For Parent PLUS loans where payments are deferred, continuing to make minimum payments is advised because the interest continues to accrue, causing the balance to balloon if payments are paused entirely. 
  • When facing high-interest debt, the fear of depleting savings must be overcome, as eliminating debt (especially secured debt like a high-APR car loan) provides a greater and more immediate return on financial peace than holding onto cash. 
  • When facing debt secured by collateral, like a home equity line of credit (HELOC), the immediate priority must be eliminating that secured debt to remove the risk to the primary residence. 
  • Inherited property should be evaluated based on whether you would purchase it today if it weren't inherited; if the answer is no, selling it to eliminate debt and fund a better financial future is often the wisest decision. 
  • The FIRE (Financially Independent, Retire Early) movement's goal of retiring extremely early can be unrealistic and potentially unhealthy if it requires extreme sacrifice and ignores the human need for contribution and purpose. 
  • Prioritizing the quality of life and opportunities for children over maximizing current 401k contributions is advisable when the underlying financial foundation (no debt, strong savings) is solid. 
  • A caller (Trent) with $165,000 saved in a Roth 401k and no debt, despite saving 40% of his income, was hesitant to take a lateral move to a higher cost-of-living area that offered better family opportunities due to fear of reducing retirement savings. 
  • The hosts strongly advised Trent to take the job offering better quality of life, projecting that even by cutting retirement contributions to the recommended 15% and purchasing a home, he is still on track to have approximately $1.5 million to $2 million by age 55. 

Segments

Caller 1: $100K Debt & Camper Living
Copied to clipboard!
(00:00:53)
  • Key Takeaway: Living in a camper while paying $1,700 monthly for the truck/camper combination is financially equivalent to paying high rent and must be resolved before debt payoff.
  • Summary: Travis is $100,000 in debt at age 22, primarily from a truck ($60K balance) and a camper ($23K balance). He is living in the camper rent-free by volunteering at state parks, but the combined payments total $1,700 monthly. The immediate priority is finding stable housing so the depreciating camper can be sold, followed by aggressively attacking the truck loan balance.
Sponsor Break: Fairwinds Credit Union
Copied to clipboard!
(00:09:01)
  • Key Takeaway: Winning with money requires intentionality, supported by banking tools that avoid fees and promote budget connection.
  • Summary: Winning with money is intentional, not autopilot, requiring tools that support budgeting. Fairwinds Credit Union offers a Smart Bundle featuring a high-yield savings account and a Spend Smart checking account free of nickel-and-dime fees. The Ramsey BeWeird debit card serves as a constant reminder that the user controls their money.
Caller 2: Parent PLUS Loan Strategy
Copied to clipboard!
(00:10:24)
  • Key Takeaway: Continue making minimum payments on deferred Parent PLUS loans because interest accrues even without required payments, ballooning the balance.
  • Summary: Marie has $55,000 in Parent PLUS loans that are not yet due, alongside credit card debt and a mortgage. The advice is to continue making the minimum required payments on the Parent PLUS loans, even if they are small, to prevent the balance from growing due to accruing interest. Her total non-mortgage debt is around $70,000, and with a $110,000 household income, she could be debt-free in 18 to 24 months through aggressive debt snowball application.
Sponsor Break: BetterHelp & Tax Prep
Copied to clipboard!
(00:20:13)
  • Key Takeaway: Therapy provides necessary support for navigating relationship challenges, and filing taxes early reduces stress and secures better deals.
  • Summary: Therapy helps individuals identify relationship pressures and build strong connections, and BetterHelp offers online matching with licensed therapists. For tax preparation, Ramsey Smart Tax offers an affordable, simple filing process with built-in support. Filing early helps remove tax stress and secures better deals.
Caller 3: Helping Brother-in-Law Boundaries
Copied to clipboard!
(00:22:20)
  • Key Takeaway: Do not provide financial help to family members unless they acknowledge they need help and have a concrete plan for how the assistance will create lasting progress.
  • Summary: John is concerned about enabling his wife’s brother-in-law financially, even considering paying for a year of childcare so the mother could work. The hosts determined that since there was no certainty the mother would actually seek employment, the investment would be poor and likely lead to resentment. Financial help should be withheld until the recipients acknowledge their need and demonstrate a commitment to change, allowing them to reach a breaking point first.
Caller 4: Post-College Housing Search
Copied to clipboard!
(00:27:58)
  • Key Takeaway: The quality of life improvement gained by avoiding severe traffic commutes often outweighs the perceived financial shock of moving from minimal living expenses to standard rent.
  • Summary: Jonathan, a recent RN graduate earning $90K, lives at home for $200/month but fears moving out to pay $1,500 in rent near his hospital in Fairfax, VA. Since he has no debt and a strong income trajectory, the $1,500 rent is within the recommended 25% after-tax income guideline. He should prioritize finding a roommate to lower costs or accept the trade-off of a better quality of life by avoiding the stressful Northern Virginia commute.
Sponsor Break: Dave Ramsey on Pre-Born
Copied to clipboard!
(00:42:49)
  • Key Takeaway: A $28 gift to Pre-Born provides a free ultrasound, which results in an 80% likelihood of the mother choosing life for the baby.
  • Summary: Pre-Born partners with clinics to offer free ultrasounds to mothers in crisis, sharing the gospel at every clinic. When a mother sees her baby on the screen, the decision often shifts to choosing life, which occurs 80% of the time. A $28 donation funds one of these life-changing ultrasounds.
Caller 5: Scammed Out of Retirement
Copied to clipboard!
(00:44:53)
  • Key Takeaway: After eliminating all non-mortgage debt using existing liquid assets, a single mother starting over at 54 must immediately begin investing 15% of her income for retirement, likely working longer than planned.
  • Summary: Sabrina, 54, was scammed out of her retirement savings by her ex, leaving her with $45,000 liquid cash and $30,000 in non-mortgage debt (including a car loan worth $10K less than the balance). She should immediately pay off all consumer debt and use the remaining $15,000 to establish an emergency fund, prioritizing setting up a will and special needs trust for her child. With an $80,000 income, she must invest 15% ($12,000 annually) into retirement accounts to build wealth after starting from zero.
Caller 6: Volatile Income & Debt Payoff
Copied to clipboard!
(00:54:34)
  • Key Takeaway: Fear of income volatility should not prevent debt payoff; debt itself is a greater risk, and past experience proves the ability to work hard if savings are depleted.
  • Summary: Brandon, in the volatile oil and gas industry, has $70,000 in non-mortgage debt secured by his home equity and $40,000 in cash savings. He fears using his savings because of past industry downturns, but the hosts argue that debt is the greater risk. He should immediately use the $40,000 to eliminate the $40,000 in unsecured debt (HELOC and lot loan) because his history proves he can hustle to rebuild savings if laid off.
Paying Off Secured Debt
Copied to clipboard!
(00:59:51)
  • Key Takeaway: Immediately eliminate secured debts like a HELOC using available cash to remove the risk of collateral loss on the primary residence.
  • Summary: The caller had $70,000 in debt, including a $20,000 HELOC, and $40,000 in cash. The advice was to immediately pay off the lot loan and the HELOC because they are tied to the house as collateral. This action removes significant risk, especially for someone who claims to be afraid of risk but has taken on collateralized debt.
Income and Debt Payoff Timeline
Copied to clipboard!
(01:00:39)
  • Key Takeaway: With a combined household income of $160,000, the remaining $30,000 in business line of credit debt can be eliminated within months.
  • Summary: After clearing the secured debts, the remaining $30,000 debt should be paid off quickly using the household’s $160,000 income. Following debt payoff, the next step is rebuilding the fully funded emergency fund over the subsequent six months to establish true financial peace.
Real Estate Career Transition Timing
Copied to clipboard!
(01:01:21)
  • Key Takeaway: Do not attempt to transition into real estate investing part-time; focus on debt freedom and fully funding the emergency fund first.
  • Summary: The caller, a real estate broker, asked about re-entering the market for transition security, but the hosts advised against part-time real estate efforts. The priority must be completing Baby Step 3 (fully funded emergency fund) before considering a career transition, which should occur about one year after starting the debt payoff plan.
Misplaced Fear in Financial Planning
Copied to clipboard!
(01:02:29)
  • Key Takeaway: The true financial fear should be the $70,000 in debt tied to the home, not the temporary lack of savings for small emergencies.
  • Summary: The caller was afraid of depleting savings for emergencies, but the hosts pointed out that the greater danger is the large, secured debt. Following the debt payoff plan provides financial peace, and the caller’s hard work and income suggest they can quickly recover savings after clearing the debt.
Importance of Term Life Insurance
Copied to clipboard!
(01:04:25)
  • Key Takeaway: Term life insurance is essential to ensure a spouse and children can grieve without immediate financial crisis, replacing income and covering final expenses.
  • Summary: Half of Americans lack sufficient life insurance, which is framed as a failure to care for one’s family. Term life insurance allows a surviving spouse to either manage investments or simply focus on grieving, rather than worrying about immediate survival or funeral costs.
Using EveryDollar for Budgeting
Copied to clipboard!
(01:06:01)
  • Key Takeaway: The EveryDollar app provides the entire Baby Steps plan, offering personalized coaching and recommendations to help users find extra money.
  • Summary: EveryDollar is presented as more than just a budgeting tool; it integrates the complete Ramsey Baby Steps plan. Users can track progress, receive coaching, and potentially find significant extra money hidden in their budget within minutes of starting.
AI Use in Tax Preparation
Copied to clipboard!
(01:06:46)
  • Key Takeaway: If using a tax firm that employs AI, clients should ask detailed questions about its use, especially regarding overseas processing, to ensure comfort and transparency.
  • Summary: The hosts are not worried about professional firms using AI to speed up clerical work, but the client must understand the process. If a client is uncomfortable with the use of AI or overseas entities in their tax preparation, they have the right to decline the service and find a firm that operates ‘old school’.
Inherited Property Decision Making
Copied to clipboard!
(01:09:53)
  • Key Takeaway: Sell inherited property if you would not purchase it today based on its location and if the proceeds can eliminate significant debt and improve current living stability.
  • Summary: The caller inherited a lake house but noted it was outside their children’s school district and had ongoing boundary issues. Since they would not buy the house voluntarily, the best financial decision was to resolve the boundary issues, sell the paid-off property, and use the $110,000+ net proceeds to pay off $60,000 in debt and secure a down payment on a primary residence.
Entrepreneurship and Business Software
Copied to clipboard!
(01:15:48)
  • Key Takeaway: Growing businesses need integrated systems like NetSuite, especially with built-in AI, to gain real-time insights and avoid wasting time on inaccurate spreadsheets.
  • Summary: NetSuite is recommended for growing businesses to connect all operational units, preventing issues caused by disconnected data. Its built-in AI helps flag potential risks like inventory issues or cash flow problems proactively, allowing for faster, data-driven decision-making.
Refinancing Mortgage Strategy
Copied to clipboard!
(01:17:50)
  • Key Takeaway: Refinancing a 30-year mortgage to a 15-year term requires calculating the break-even point based on closing costs and current interest rates; otherwise, paying extra on the existing loan is sufficient.
  • Summary: Refinancing to a 15-year mortgage is not an automatic ‘yes’ if already holding a 30-year loan. If the break-even period for the refinance costs is too long due to current rates, it is better to keep the existing loan and aggressively pay extra principal. Churchill Mortgage can help run these specific numbers.
Addressing Underwater Auto Loans
Copied to clipboard!
(01:19:00)
  • Key Takeaway: Do not take on more debt to sell a vehicle you are underwater on; instead, aggressively pay down the loan while surviving on one car until the title is clear.
  • Summary: The caller was $20,000 underwater on a $34,000 car loan and was denied a loan for the difference needed to sell. Since the family can survive with the fiancé’s cash car, the best path is to aggressively save or pay down the loan balance to clear the lien, avoiding further debt accumulation.
Realistic Early Retirement Goals (FIRE)
Copied to clipboard!
(01:27:42)
  • Key Takeaway: Retiring extremely early (FIRE movement) requires a massive savings rate and may lead to boredom or underestimation of future costs like college tuition.
  • Summary: The host expressed concern over the FIRE movement, noting its founder returned to work due to under-saving and boredom, highlighting the human need for contribution. The caller’s goal of $7,000–$9,000 monthly income required a $1.5 million nest egg, which was deemed a long climb given current debt and savings levels.
Baby Steps Order of Operations
Copied to clipboard!
(01:30:19)
  • Key Takeaway: Follow the Baby Steps strictly: pay off all consumer debt, fully fund the emergency savings, invest 15% for retirement, then attack the mortgage.
  • Summary: The caller’s plan to prioritize the mortgage over car payments was corrected; consumer debt must be eliminated first. Carrying $2,200 in car payments contradicts the goal of early financial freedom, and the mortgage should only be attacked after retirement savings (15%) are established.
Debt Payoff Motivation
Copied to clipboard!
(01:44:46)
  • Key Takeaway: If quitting a side hustle only delays debt freedom by a few months, maintain the hustle to eliminate debt faster and avoid prolonged interest payments.
  • Summary: The caller was tired of a side hustle but noted that quitting would only delay Baby Step Two payoff by three or four months. The hosts advised powering through the extra work to eliminate both the debt and the side hustle simultaneously, rather than choosing between two undesirable options.
Movie Sequel and Faith Themes
Copied to clipboard!
(01:48:05)
  • Key Takeaway: The sequel film, ‘I Can Only Imagine 2,’ explores the tension between grief and gratitude after achieving success, focusing on the true cost of career focus.
  • Summary: The sequel centers on the story behind the song ‘Even If’ and features a new character dealing with hardship while maintaining gratitude. The film explores what happens when ‘happily ever after breaks’ after success, a theme resonating with the struggles listeners face while following the Baby Steps.
Retirement Withdrawal Strategy
Copied to clipboard!
(01:40:15)
  • Key Takeaway: When retiring, use a bucket strategy for withdrawals: liquid cash first, then taxable brokerage accounts, followed by traditional retirement accounts, saving Roth accounts for last due to tax-free growth.
  • Summary: The couple planning to retire at 65 with a $1.1 million IRA needed advice on paying off their $155,000 mortgage. The recommended withdrawal order prioritizes preserving tax-advantaged growth, meaning cash savings are used first, followed by taxable investments, before touching retirement funds.
Sponsor and Scripture Read
Copied to clipboard!
(01:57:21)
  • Key Takeaway: Investing requires proactive planning, as money will not work for you if you only hope for the best.
  • Summary: The segment opened with promotion for the IcanOnlyImaginemovie.com and the SmartVestor program, which connects individuals with advisors for retirement and investing strategies. The scripture of the day emphasized that faithfulness with small resources predicts faithfulness with large resources.
Retirement vs. Family Opportunity
Copied to clipboard!
(01:59:00)
  • Key Takeaway: A caller earning $74,000 annually, who is debt-free and saving 40% into his Roth 401k, questioned moving for better family opportunities due to anticipated lower retirement savings in a higher cost-of-living area.
  • Summary: Trent, age 38, has $165,000 saved and plans for two more children, but a potential lateral move within his company to a larger city offers better extracurricular opportunities for his kids. His primary doubt stems from the inability to maintain his current 40% retirement contribution rate due to higher expected expenses.
Financial Projection and Advice
Copied to clipboard!
(02:01:22)
  • Key Takeaway: Even cutting retirement contributions to the Baby Steps 15% minimum, a 38-year-old debt-free individual can project $1.5 million to $2 million by age 55.
  • Summary: The hosts determined Trent has $50,000 in cash savings ($8k emergency fund, $42k savings) and is debt-free. They calculated that investing 15% of his income, even without future raises, yields about $1.5 million by age 55, making the move for quality of life financially sound. The hosts urged Trent to address his wife’s unhealthy fear regarding the retirement account reduction.