Timeshare debt can be a serious problem for owners who are struggling to make ends meet. Depending on the type of timeshare, missing a couple of payments can lead to collections notices, levies, judgments and even foreclosure.
If you find yourself in this situation, there are several options that may be able to help you get out of your timeshare. One option is to work with a timeshare exit company.
Some companies specialize in helping people end their timeshares, which means they can help you negotiate your debts and walk you through the process of getting out of your timeshare for less money. The best timeshare exit companies are those who have a proven track record of success and years of experience in the industry.
Before you begin shopping around, do some research into financing alternatives. Whether it’s through a loan from your developer or a personal lender, shop around for the most competitive interest rates and repayment terms.
Many salespeople will offer a timeshare loan that is secured through your developer, which can be a convenient option, but this may not always be the cheapest option. These loans usually come with higher interest rates and can take longer to pay off than other loans, which can leave you paying more in the long run.
Another option is to consider a home equity loan, which uses the value of your home as collateral. This can be a good way to finance your purchase, but it is important to note that you could lose your home if you have trouble paying off the loan.
You can also use a personal loan to fund your timeshare purchase, but you should be careful that the interest rate isn’t too high. If you have excellent credit, an unsecured personal loan should be cheaper than a timeshare loan from your developer, and it’s a good choice for most people who need to pay for their vacation property quickly.
Personal lenders that offer timeshare loans include LightStream and Upgrade. These two lenders have low credit minimums and provide fast funding for borrowers with excellent or above-average credit.
Other lenders to look at for a timeshare loan are Figure, which offers both personal loans and home equity lines of credit (HELOCs). Their credit minimum is 650 for timeshare purchases, but they can often give you a lower rate than their competitors.
If you have a lot of home equity, it might be worthwhile to refinance your existing mortgage to free up cash for a timeshare. The interest rate will be much lower than the original mortgage, but you could risk losing your home if you default on your loan.
For the most part, timeshares aren’t used for investment purposes, but they can be a great deal for buyers who want to save time and money on their vacations each year. Be sure to treat your timeshare as a real estate transaction, and don’t be afraid to ask for more than you initially think is possible.