Timeshare debt can be a difficult problem to handle. Often, people end up in a cycle of debt where they are unable to pay the mortgage and maintenance fees. If you are one of the many people who find themselves in this situation, there are steps you can take to get your finances back on track.
The first thing you should do is contact the resort. They are often willing to help you exit a timeshare agreement if you’re in trouble. Even if your credit is poor, they will likely offer some kind of solution that will not harm your score. In some cases, you can even sell your timeshare to get out of debt. However, you may not want to do this unless you are absolutely sure you can afford it.
Another option is to seek out a loan. A home equity line of credit (HELOC) or personal loan are two common options. These types of loans can be used to purchase or refinance a timeshare. Home equity loans usually have lower interest rates than a conventional timeshare loan. You can also opt to use a private personal loan if you’re interested in getting a lower rate. Alternatively, you can choose to refinance your timeshare using a 0% introductory APR credit card.
If you are facing a foreclosure, you might be surprised to learn that it will affect your credit. This can make it hard for you to rent out a unit or check in at a resort. Depending on the type of foreclosure, it can also stay on your credit report for up to seven years. That is why you should try to avoid foreclosure.
If you’re having problems with the payments on your timeshare, you should contact the resort. The developer will probably have a better understanding of the process than a loan officer or financial institution. While they might not have a solution for you, they will likely be able to inform you of the right steps you need to take.
Sometimetimes, a timeshare company will use a third-party collections agency to collect money from you. Depending on the resort, they might also sue you in civil court if you fail to pay a past-due balance. As a result, you might receive notices and collection letters that you don’t recognize.
One way to prevent this from happening is to stop paying the maintenance fee. You might also consider filing for bankruptcy. Although this option will affect your credit, it can be a useful tool if you need to avoid foreclosure.
The American Resort Development Association, an industry trade group, works to protect timeshare transactions and advocate for legislation that supports them. Many of the top resorts are members of this organization. It is also a good idea to work with a company like Wesley Financial Group that specializes in assisting you with timeshare debt elimination.
Buying a timeshare is a great way to have fun while on vacation. But, it’s important to be aware of your options before you buy. When considering a timeshare, keep in mind that you should look into all your financing options before deciding to buy.