Purchasing a timeshare can be expensive. Timeshare developers and companies often charge high finance fees and interest rates for their products, so it’s no surprise that many timeshare buyers end up in debt after buying a property. Thankfully, there are financing options that can help you pay off your timeshare loan and avoid more costly consequences.
Timeshare loans are unsecured, meaning that your home is not at risk for repossession should you default on your timeshare loan. For that reason, timeshare borrowers are often able to qualify for personal loans at lower interest rates than they might find with a mortgage or other secured loan products. This could save you thousands in interest charges over the life of your timeshare loan.
If you’re struggling to keep up with your timeshare loan payments, you might consider refinancing the debt with a new lender. However, you should be aware that your debt will be reported to credit reporting agencies if you choose to refinance, so this may have a negative impact on your credit score. Additionally, refinancing your timeshare loan with a new lender will likely increase the length of your debt repayment term, so it will take longer to get out from under the debt.
Another option is to try to sell your timeshare to a reputable online resale company. While this may be an effective strategy for some, it can be difficult to locate a buyer willing to purchase your property for a fair price. If you’re unable to sell your timeshare, you might want to consider filing for bankruptcy to remove the debt from your credit report and avoid foreclosure on your property.
You might also be able to use your home equity to pay off your timeshare loan. This is generally a more affordable option than taking out a personal loan, since the home’s value is used to secure the debt. However, you should be aware that mortgages are secured by your home’s equity and that you risk losing your house if you fail to make your timeshare payments.
A final option is to work with a timeshare exit company that can help you get rid of your property. This company can assist you in canceling your contract with the developer, selling your property on a secondhand resale site, or even filing for bankruptcy to remove the debt from your report. Be aware that any debt cancellation or foreclosing on your timeshare will result in a 1099 form and can have a significant negative effect on your credit score. You should always talk to your attorney before making any decisions about timeshare debt relief or other financial matters. They can provide you with the best advice based on your individual circumstances. They can also recommend a trusted and experienced credit repair company. You can also read our article on How to Stop Credit Card Debt Collections.