Timeshare Problems to Watch Out For
Guides, Tips, and Hacks, Timeshare Agreements
3 min read
If you’re worried about timeshare spending, you’re not alone. More and more people are realizing that their timeshare spending doesn’t fit their budget. Here are 3 ways timeshares can affect your overall financial picture.
The average cost of a timeshare these days is $22,180. And if you had that money to pay up front, good for you! However, many of us simply don’t have over $20,000 just laying around. So that means if we want a timeshare, we have to finance it.
And with financing comes interest fees. If you’re lucky, you can find reasonable interest rates. But others are left with high-interest loans. An unsecured personal loan interest rate can top 30%. Other people put their timeshares on credit cards, and those fees can be steep as well.
Even if the price of your timeshare seems reasonable, high finance fees may put that price out of reach for you. Make sure to carefully consider whether you can afford to finance a timeshare. And if you can’t, you should seriously consider whether timeshare ownership is right for you.
All timeshare owners must pay annual maintenance fees to cover the day to day costs of running the resort. Timeshare spending is different at each resort, but you can expect your fees to cover routine maintenance, landscaping, and housekeeping. Some HOAs also use maintenance fees to cover things like management companies and workers salaries.
But no matter what your fees cover, you are contractually obligated to pay them every year. Failure to pay the fees will almost certainly result in late fees and a loss of access to resort facilities. Some resorts will report your missed payments to the major credit bureaus. And if you fail to pay over the long term, the resort may seek foreclosure.
With the average owner paying around $1000 in maintenance fees each year, you need to make sure to factor these fees into your budget. You don’t want to come up short and also be on the hook for late fees. Or worse, experience credit damage and foreclosure.
Sometimes even high annual maintenance fees don’t cover everything. And when that happens, your timeshare company may pass the costs on to you in the form of a one-time special assessment. Special assessments may cover anything from repairing damages caused by weather or accidents, major upgrades or repairs, and budget shortfalls due to rising foreclosures or poor management.
Although everyone hopes these special assessments will be reasonable and rare, there’s no guarantee. So as a timeshare owner, you need to be ready to pay these unfortunate costs. And as with maintenance fees, if you fail to pay, there can be serious consequences. Be ready for late fees, collections calls, credit damage, and even foreclosure.
The sad truth is that the timeshare industry is full of scams. And these scams can affect your bottom line. The most common and possibly the most insidious scam that timeshare owners face is the resale scam. Resale scams target unhappy owners who want to get out of their timeshare. Many such owners turn to the resale market but quickly find out that selling a timeshare is harder than it sounds. The market is flooded with inventory. But with relatively few buyers, many owners end up stuck with their timeshare or selling for pennies on the dollar.
Enter the timeshare resale scam. Unscrupulous companies contact these desperate owners and offer them just what they’re looking for: a buyer for their timeshare. In exchange, they charge large, upfront fees, usually paid by wire transfers or other methods that are difficult to track. Once the owner pays the fees, the buyer and often the company disappears with the money. Timeshare scams like this cost owners thousands every year.
If your timeshare spending is out of control, you can stop it. At Primo Management Group, we help owners get out of their contracts for good. No more spending on something you don’t need, don’t want, or can’t afford. Contact us today for a free, no-risk consultation.
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We know how stressful timeshare contracts can be. What once sounded like a dream resort package turned into a nightmare. When you don't know where to turn, look to PMG to relieve you of your timeshare burden. We pride ourselves on open, honest, and frequent communication with our clients.
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