If you are considering purchasing a timeshare, it is important to know what is involved. Timeshares are usually purchased with a mortgage, and you will have to pay for the maintenance fees on your unit over the years. These can increase over time, making it difficult to afford your mortgage payments. It can also be tough to sell the property.
Buying a timeshare can be a good choice if you like the idea of a fun vacation. However, you may not be able to use the resort if you become in debt. And if you do not keep up with your mortgage payments, you can face foreclosure. This will also affect your credit.
Fortunately, there are options to prevent this from happening. For example, you can contact a company that specializes in timeshare debt elimination. A company such as Wesley Financial Group will help you avoid the problems that come with a timeshare. They have offices in Nashville and Las Vegas, and can help you with complete timeshare cancellation.
One of the first things you should do is get in touch with a legal professional. The timeshare company you have been dealing with may be trying to garnish your wages or levy your bank account. You should not give them permission to do this, and you should not let them bother you.
Another option is to seek out a private personal loan. This type of loan is available to people with good credit. Although the interest rates and repayment terms are higher, you may be able to save a significant amount of money. Using a personal loan can help you avoid the problems that come with acquiring a timeshare.
Another way to avoid accumulating debt is to make sure you are paying on your timeshare. Timeshare companies send the credit bureaus a notification about your payment history. But if you do not pay, they can sue you in civil court for the balance owed. Their lawsuits and collections notices can damage your credit score.
If you have deeded timeshares, you will also have to go through foreclosure proceedings. These can stay on your credit report for seven years. While they do not impact your credit score as much as a bankruptcies, they will make it harder to rent a unit or check in at the resort.
Even though bankruptcy will not automatically end your timeshare agreement, it may help you avoid foreclosure. However, a bankruptcy can hurt your credit, and you should seek legal assistance if you have any concerns about the bankruptcy process.
If you do not think your timeshare is worth the effort, it may be a good idea to look into other options. Some resorts offer solutions that will not affect your credit. Also, you may be able to find a home equity loan to help you. Home equity loans can be a good option, as the interest is tax deductible.
Ultimately, you should try to work with your timeshare management company to come up with a solution. But if you are unable to do so, you should consider filing for bankruptcy.