The burden of timeshare debt often begins at the time of purchase with the “easy, on-the-spot” financing. That simple to qualify for financing usually comes at an incredibly high interest rate of 13% to over 20%. This causes many owners to pay almost twice as much as the original purchase price when interest is added to the loan.
Timeshare companies can charge these high interest rates because it’s nearly impossible to get financing from any other entity for the purchase of timeshare. Banks and financial institutions stay away from timeshares because timeshares depreciate nearly 100% as soon as they are purchased.
Ever increasing maintenance fees can be a surprising burden that hits timeshare owners in the budget. Timeshare companies often neglect to mention that timeshare maintenance fees will increase, typically every year. While sometimes the increase is negligible, the average owner has seen maintenance fees rise an average of over 8% per year. Since a timeshare ownership is a lifetime commitment, these increases rack up and actually represent a long term debt with no end in sight. Unless your income increases, your timeshare debt will become an even greater portion of your family’s budget.
Sometimes, timeshare owners are under the impression that their timeshare debt is not as big a deal as other debt from purchases such as a house or car. But as many owners find out to their surprise, getting behind on timeshare payments can be just as damaging as neglecting to make payments on your car or house. Timeshare debt can be sold to debt collectors, cause liens on your other properties, lead to wage garnishments, and will eventually go into foreclosure, which will seriously damage your credit
The best and easiest way to eliminate timeshare debt is to get rid of your timeshare for good. But getting rid of a timeshare is not always easy, especially if you owe money on your timeshare mortgage or you are not up to date on your payments. Deed transfers, timeshare donation (usually a scam), and timeshare resale all require you to be up to date on payments.
One solution to your timeshare debt problem is cancelling your timeshare contract using the services of National Cancellation & Transfer. Our retained attorneys have helped thousands of clients cancel their timeshare contracts and stop the debt cycle forever. If you or someone you care about is drowning in timeshare debt and needs help, give National Cancellation & Transfer a call today at 844-766-3337.