RV and Boat Debt

Boat and RV Debt Settlement

Settle Your RV or Boat Loan Debt Without Bankruptcy.

When the economy is good, many people buy recreational vehicles or RVs, ATVs, boats, campers, trailers, and other vehicles. As the economy declines, it becomes difficult, if not impossible, for many Americans to keep up with the loans on these vehicles. Defaulting on an RV loan can lead to repossession or worse; you could be sued for the balance of the debt. If you find yourself upside down with an RV or vehicle loan or are simply carrying too much debt, you can obtain true RV debt forgiveness through an attorney-negotiated debt settlement.

The Story Behind RV Loans

RV loans, also known as recreational vehicle loans, may refer to any financing incurred in order to purchase a motor home, travel trailer, truck camper, van conversion, or boat. Some lenders use the term broadly to refer to any major non-real estate loan.

When the American economy was booming in the late 1990s, the market for RVs took off. Demand was at an all-time high, yet because of the relatively high price point (retail prices for a conventional trailer start at about $9,500, and prices for motorhomes start at around $47,000), people weren’t able to purchase without financing options. The solution seemed easy enough at the time – finding lenders willing to extend RV loans to borrowers wasn’t a problem. Banks, finance companies, credit unions, and RV dealers themselves jumped at the chance to get a piece of the pie.

Today, Many People Are Now Stuck With Dream RVs or Boats They Can’t Afford. What Happened?

Today’s reality is often far from yesterday’s hope. Securing loan approval for your dream vessel or recreational vehicle comes with long-term financial responsibility, and that leaves people at risk of the effects of, well, life. While competitive rates might have looked attractive initially, life changes can make those monthly payments feel impossible. Your loan application might have seemed straightforward at first, but now you’re facing a different reality.

People purchased RVs without full knowledge of all of the costs associated with owning an RV. Aside from monthly loan payments, there are the costs of RV insurance, yearly license and registration fees, maintenance, storage, fuel, etc., that a new RV owner hardly thinks about before purchasing.
They financed directly through the dealer rather than shopping around for better interest rates. This is a common mistake people make when buying any automobile – in their rush to drive off the lot with the car, they simply take the first loan offered to them.
People took out loans they couldn’t afford. The danger of RV loans is that they are incredibly easy to qualify for. Eighty percent of lenders require less than a 20 percent down payment, and nearly 30 percent will accept less than a 10 percent down payment.
Borrowers can lose their jobs or face other unexpected expenses. Often, people find themselves in financial hardship through no fault of their own.

Breaking Free from Overwhelming RV and Boat Loans

Your RV or boat loan might feel like an anchor weighing you down. When financial storms hit, many owners find themselves struggling with steep monthly payments that once seemed manageable. At McCarthy Law, we help you find relief from challenging boat and RV loans through proven debt settlement strategies.

If you’re dealing with an insurance company that’s raising premiums or a credit union that won’t budge on loan terms, you have options. Many owners don’t realize they can negotiate their loan terms even after signing. Our debt settlement attorneys regularly work with lenders to modify agreements and find solutions that work for everyone involved.

RV loan debt settlement works just like any other debt settlement – an attorney reviews your financial situation and performs a full debt analysis to come up with a settlement plan. Then, the attorney goes to work negotiating with your creditors to arrive at a settlement that is only a fraction of the balance. All of this is done without bankruptcy.

According to reports published by the Recreation Vehicle Industry Association (RVIA), under 1.5 percent of all RV loans are delinquent. Because this is such a small percentage, RV lenders may seem unwilling to negotiate at first, hoping if they hold out long enough, you will end up paying the full amount. This is why it is better to leave the negotiations to a professional with years of experience settling consumer debts.

RV & Boat Loan Debt Settlement Can Get You Back On Track

McCarthy Law has years of experience in debt settlement and can assist you in becoming debt-free. Contact us today to set up an appointment for your free consultation. We also provide services for credit card debt management, student loan debt settlement, and divorce debt settlement, providing accurate and long-term solutions to your debt trouble. Visit us in one of our offices nationwide for the debt relief you deserve.

Answering All Your RV and Boat Loan Questions

What Happens If You Stop Making Payments?

Missing payments on your boat or RV loan can trigger serious consequences. Lenders typically report late payments to credit bureaus after 30 days, leading to credit score damage. After 90–180 days of missed payments, they may pursue repossession.

Can You Walk Away from Your Loan?

While voluntarily surrendering your boat or RV might seem like an easy solution, it often leads to additional financial complications. The lender can still pursue you for the remaining balance after selling the repossessed vehicle, potentially leading to collections or legal action.

How Does Loan Settlement Work?

Through settlement negotiations, we often secure significant reductions in your total payoff amount. This process involves presenting your financial hardship to lenders and negotiating a lump sum payment or payment plan that’s lower than your current balance.

Are There Tax Implications?

Settled debt may be considered taxable income by the IRS. However, if you can prove insolvency at the time of settlement, you might avoid tax liability. We guide you through these considerations during the settlement process.

What About My Credit Score?

Loan settlement typically impacts your credit score initially. However, many clients find this temporary effect preferable to years of struggling with unmanageable payments or facing repossession.

Can You Settle if You're Still Current on Payments?

While being current on payments might affect negotiating leverage, settlement is still possible. Each situation is unique, and we evaluate your specific circumstances to recommend the most effective approach.

Will Your Insurance Rates Change?

Insurance rates typically aren’t affected by loan settlement, as they’re based on the vehicle’s value and your driving history rather than your loan status. Though your credit score may factor into insurance premiums.