Personal Finance

I have $35k in a Roth, $41k in debt. $27k is from an offroad UTV I regret getting. What are my options?

Joey Frenette

Published: February 23, 2025 3:06 pm

Bad financial decisions happen, and while they can be tough to go back on, I do think there’s a learning opportunity to be had from them as one aims to avoid similar mistakes in the future. For readers, there’s ample value in learning from someone else’s mistakes.

And in this piece, we’ll look into the case of a Reddit user who’s in a lofty five-figure debt, thanks in part to the unnecessary purchase of a $27,000 offroad UTV (utility terrain vehicle). Indeed, it can be easy to make a big-ticket impulse purchase, especially if you envision yourself on all the adventures you’ll have after you’ve made a splurge.

After all, you can put it on the tab and take care of it later. Indeed, it’s this type of thinking that leads many Americans to down considerable sums of consumer debt. With hefty interest rates, most such consumer purchases are more than regrettable, as one is set back financially by far more than just the sticker price of a big-ticket purchase.

Going back on bad impulse purchases for the betterment of one’s finances

While it pains me to suggest someone sell a fun item at a slight loss, especially one that someone had their heart set on, I do think it’s the wise move to make if the numbers no longer make sense. Indeed, it’s not just the high sticker price of the vehicle but the cost of maintaining and fuelling it up. Personally, I have to stand by the most popular Reddit comment, which urges the poster to sell it.

Though it’s going to be hard to get back more than 90% of the price paid for the UTV, any amount that can be raised, I believe, should go directly toward wiping out a big chunk of that debt. Ideally, it’d be nice to eliminate all of the debt. But taking cash out of the Roth, I believe, isn’t all too necessary, especially if the individual can cut their debt in half by using the proceeds from a UTV sale.

This user needs to drive their debt down to zero. Selling the UTV is a priority.

Indeed, $20,000 or so in debt is more than manageable in my books. To chip away at the rest of the debt, perhaps cutting back on the expenses (think a “no buy” year) and postponing further Roth contributions for a year or two could go a long way.

Indeed, when one is in debt repayment mode, most of what remains from every paycheck should be thrown at the highest-interest debts first. Once the individual is debt-free or debt-light, I’d suggest they never go back into consumer debt again. Instead, budgeting for something and paying the full amount in short order (let’s say paying off the credit card bill in full at the end of the month) will be the move going forward, preferably after Roth contributions are made. 

In any case, this Reddit user can dig themselves out of the hole they dug themselves in if they can find a buyer for their UTV. Perhaps they can buy a used one with cash in the distant future if they’re feeling down about selling their prized possession.

The bottom line

In short, this Reddit user splurged on a discretionary good they couldn’t afford with money they did not have. Fortunately, they can go back on their mistake as they look to offload the offroad UTV and double down on debt repayment efforts. It won’t be fun, and it may even be a bit painful to sell the UTV, but it’s the responsible thing to do to get back on the financial track as quickly as possible.