Timeshares give you a place to stay at a vacation destination, and they can be a great way to save money on travel. However, there are some downsides to owning a timeshare, and one of those is debt.
Debt is one of the most common issues with timeshares, and it can lead to serious problems for you if you have trouble paying back the debt. This is because timeshares are often financed by financing companies, and if you fall behind on your payments, these finance companies will report this to credit bureaus, which can hurt your credit score.
The best way to prevent this from happening is to pay your timeshare bills on time. If you’re struggling to make your payments, there are a few options available for exiting the contract.
0% APR credit cards: If you have the cash to pay off your timeshare loan, you can use an introductory 0% APR offer from a credit card company to make the payment and avoid interest. This can help you pay off your timeshare sooner, but be aware that the interest rate on these offers typically goes up after your initial 0% APR period ends.
Home equity loans: You can get a home equity loan to buy a timeshare, and you will usually receive a lower interest rate because the loan is secured by your house. This is a good option for people who have a lot of equity in their home, but be sure you can afford to make the loan payments on a regular basis.
Personal loans: You may be able to borrow from a private lender if you have good credit. Many lenders will give you a rate quote without doing a full credit check, which can preserve your credit and speed up the process of refinancing.
Other sources:
If you are struggling to keep up with your timeshare bill, it’s important to understand your debt situation before taking any steps to resolve the problem. You can always ask for a repayment plan with your timeshare resort, and they may be able to help you find a solution that will work well for you.
Donating your timeshare: You could also consider selling it to another owner. There are a number of websites that can connect you with other timeshare owners who want to sell their units. This is a popular option for people who are looking to escape the financial burden of owning a timeshare, but don’t have any other plans for the property.
Other ways to eliminate the debt:
The most common way to eliminate timeshare debt is to pay off the balance of the mortgage or maintenance fees. You can do this by making additional payments to the mortgage company, or by using a personal loan.
If your mortgage is deeded to the resort, they will typically file a foreclosure lawsuit against you if you haven’t paid your bill. Once the foreclosure takes place, you will lose your rights to the property.