Buying a timeshare can be a great experience, but it can also lead to serious problems when you get into debt. Fortunately, there are options to help you get out of your timeshare quickly and easily.
The first step is to understand how your timeshare works and what it means for you financially. This will help you determine whether or not it’s the right choice for you.
You can buy a timeshare in many ways, but the most common is through an ownership agreement known as a “share deeded” property. This is where you buy a fractional interest in a vacation property, typically for a week or month each year.
Some share deeded properties also allow you to exchange your week or month at different locations and times within a timeshare network. However, you will often pay additional fees for a change in location or time, and these changes can be very difficult to make.
Another option is an undeeded or leased timeshare, where you buy points that can be used for various locations and times of year. These are often cheaper than traditional timeshares, but they don’t always work out well for you if you want to trade up in the future or if you have specific preferences.
If you have a good credit score, a personal loan may be the best option for financing your timeshare purchase. These loans often have lower interest rates than those offered by a timeshare-recommended lender, and can be easier to qualify for.
In addition, if you can’t afford your maintenance fees, you might be able to get the resort to cover them for you. This is not a guarantee, but it can happen.
Alternatively, you can sell your timeshare for cash or use it as collateral to secure a home equity line of credit (HELOC). This is less common than it used to be, but it can be an option if you have a large amount of equity in your home or are planning on moving soon.
The downside of using a home equity loan to finance your timeshare is that your home might be taken away from you in the event you default on your loan. You’ll need to show proof of your ability to pay back the loan if you want to avoid this.
A personal loan can be a great option for people with strong credit, especially those with FICO scores of 600-649. These lenders consider your credit history, employment, and other factors when determining eligibility.
If your credit is low, you may need to look elsewhere for funding. Several online lending platforms offer unsecured personal loans that are designed for consumers with poor credit, such as those who have scores under 580.
For example, Upstart partners with banks to offer a personal loan that can be used for almost anything, including timeshare purchases. Upstart’s lending model considers education, employment, and other factors to ensure borrowers can be approved for a loan.