Millions of people enjoy their timeshares and are glad they made the investment. However, as the economy contracts and more consumers look to save money on their expenses, it is possible that some of these owners are finding themselves in timeshare debt. This is not uncommon and, if not handled correctly, can lead to credit problems and even foreclosure.
One way to manage a timeshare debt is to refinance. This can be done in a few different ways, depending on your goals and the situation. Whether you have been missing payments or just want a lower interest rate, refinancing a timeshare loan can help you save money and get out of your timeshare obligations.
If you have a timeshare and are looking for a better deal on your loan, the first thing to do is check your credit report. You can do this for free by visiting MoneyTips. Once you know your credit report, you can start getting rate quotes from lenders to see what your options are. Whenever you apply for new financing, the lender will do a full credit check. This can take some time and can impact your score, so it’s a good idea to do this in advance.
Once you find a lender that is willing to offer you a low-interest rate on a timeshare loan, the next step is to submit your application. Be sure to include all the necessary documentation and keep in close contact with the lender in case they need to ask for additional information. After you are approved, you can begin the process of refinancing your timeshare loan.
The most important step when refinancing a timeshare is to understand the terms of your contract. This includes the upfront fees, maintenance fees, and other associated costs. It is also important to note that many timeshares hit you with annual property taxes, and these can be bundled with the upfront fees or rolled into your maintenance fees.
Often, timeshares are sold with a special promotion that allows you to finance the upfront fees or down payment. This can lead to a higher total cost than what is initially presented at the resort. To avoid this, you should always negotiate a more accurate upfront fee amount before signing the contract.
In addition, if you are able to pay off your timeshare loan early, this will help you save on the interest rate. In most cases, the interest on a timeshare loan is much lower than the interest on an equity line of credit or home mortgage.
If you’re still having trouble making your timeshare loan payments, you may be able to get out of your agreement by filing for bankruptcy. However, this will leave a mark on your credit report and is not the only option for those who have fallen behind. There are other options for those who want to get out of a timeshare that don’t involve going bankrupt, such as working with a company that specializes in timeshare exit services.