Timeshare debt is a financial issue that many people struggle with. These loans can be complicated to deal with, and the interest rates they carry can be very high.
If you’re considering purchasing a timeshare, it’s important to research the options available to you. There are several types of loans that can help you buy a timeshare without incurring a lot of debt.
1. Get a lower rate with a personal loan
If you have excellent credit, you can qualify for a low-interest loan that will let you pay off your timeshare. These loans are unsecured, which means that the lender won’t require you to put up any property as collateral. These personal loans can be a great way to finance your timeshare, since they have lower interest rates and more flexible terms than a traditional mortgage.
2. Keep your money out of the debt collector’s hands
If you default on a timeshare loan, it can have a major impact on your credit. This type of debt is reported to the credit reporting agencies, which can cause your credit score to go down and lead to collection calls from a debt collector. If you have a timeshare loan and also owe maintenance fees to the resort, this can compound the problem because it will cause two collections agencies to work together.
3. Avoid a foreclosure lawsuit
If your timeshare is deeded, a default can lead to the loss of the property and damage your credit. This is especially true if you have multiple outstanding accounts that are not paid on time.
4. Get out of timeshare debt with a timeshare cancellation service
If the resort doesn’t take back your unit, it’s best to engage an exit company that will help you get rid of the debt. These companies are controversial and can be expensive, but they can save you years of fees and monthly payments by letting you sell your timeshare for the full value.
5. Consider donating your timeshare to a charity
Finally, don’t forget about giving your timeshare to a local charity. This can be an easy way to get rid of your debt and support a good cause at the same time.
6. Use a 0% APR credit card to pay off your timeshare debt
If you don’t have much credit, it may not be possible to obtain a lower interest rate on a new loan. However, if you do have good credit, a 0% APR credit card can be a great way to pay off your timeshare loan.
7. Refinance your timeshare with a home equity loan or a personal loan
If your credit is good, you can refinance your timeshare with a personal loan or a home equity line of credit (HELOC). This can be a better option for most people because these loans usually come with lower interest rates and larger loan limits than a traditional mortgage.
If you’re thinking about getting a timeshare loan, it’s a good idea to shop around and compare a few different lenders before making a decision. The loan that you choose should fit your budget and allow you to pay off your timeshare quickly.