The Ramsey Show Highlights I Owe More On My Car Than I Make In A Year
Mar 8, 2026
Skylar, a 27-year-old delivery driver making about $31,700 a year, calls in about being underwater on a car loan and an ATV payment. The conversation covers options for handling negative equity, whether to sell the ATV, and the push toward steadier, full-time work. Practical next steps and resources are offered to build stability and an emergency fund.
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Replace Loaned Car With Repaired Cash Car
- Sell the expensive car and use the paid-off 2009 Honda Civic as your daily driver to eliminate the $529 monthly payment.
- Skylar plans repairs (water pump done, VVT oil gasket/oil left) to make the cash car roadworthy and avoid more debt.
Use A Small Loan Or Credit Union To Cover Negative Equity
- Cover the $10,000 negative equity by taking a small loan from a credit union rather than rolling it into new financing.
- John Delony recommends a local credit union or Fairwinds to review Skylar's history and offer better terms.
Get Rid Of Or Pay Down The ATV
- Sell the ATV or save up the difference instead of keeping another financed vehicle to reduce monthly obligations.
- John suggests the ATV might fetch about $7,000 and recommends saving roughly $3,000 to clear that loan.
