The Ramsey Show Highlights I Have $1,800 In Car Payments At 18% interest
Oct 15, 2025
A caller shares her struggle with $1,800 in monthly car payments at a staggering 18% interest. Hosts dive into the details, assessing vehicle values and emphasizing the need to sell one high-payment car. They discuss her finances, household income, and expenses while highlighting the importance of budgeting. Suggestions for tackling the debt include taking a smaller loan and switching to cheaper cars. With no savings, the path to financial stability calls for extreme lifestyle changes and a commitment to financial education.
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Buying A Replacement Car After An Engine Failure
- Sarah bought a 2021 GMC Acadia after her previous car's engine was failing at a dealership.
- The purchase contributed to high payments and underwater status due to bad credit.
Trade Down To Stop Negative Equity
- Sell your overvalued car and buy a cheap reliable vehicle to stop bleeding money on payments.
- Use private-party value (not dealer) to get more and reduce negative equity before it grows.
Car Payments Devour Take-Home Pay
- Excessive car payments can consume more than half an individual's take-home pay and cripple finances.
- Reducing vehicle cost is foundational before other financial progress can occur.