Do You Need To Be Debt Free To Live Full Time In An RV?

Home kitchen or RV?  Kind of hard to tell, until you try deducting the interest on the loan.

Home kitchen or RV? Kind of hard to tell, until you try deducting the interest on the loan.

I received a question via email the other day, a couple asked if was necessary to be debt free to go full time. The answer is no, you don’t, but it helps.

Isn’t a payment on a Class A just like a mortgage payment? Not necessarily. For one homes are financed with a mortgage and an RV is handled as an auto loan. The interest rate on even the best RV loans is running 2 to 3 points higher than a mortgage and there’s the double whammy of not being able to deduct the interest on a vehicle loan.

If you’re working on the road then it really wouldn’t be that much different from a home loan. If your job requires extensive travel you might be able to deduct some of your mileage and campground fees, but you’ll need to talk to your tax adviser about that one.

There are many people with mobile careers that find RV living to be a big advantage. I know one couple where the wife is a nurse that floats to different hospitals in the same state system, depending on where the need is greatest. She gets a premium rate for mobility and moving is as easy as running in the slides.

Another road friend is an airline pilot. Mobility helps him take routes that pay better and get more hours so he can advance to the left seat faster. Other full timers I’ve met include computer programmers, welders, electricians, and equipment installers.

You’re definitely better off going debt free if it’s at all possible. You might be only getting your mail twice a month and you don’t want bills chasing you around the country.

Even though I think it’s a mistake, many people in RVs are making that loan payment every month and seem to be getting along just fine.

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