No one is going on vacation right now. Everyone must stay home to slow the spread of COVID-19. Just because people are stuck at home, however, doesn’t mean they can’t dream about their next trip. Remember that there are tons of different ways to vacation—and not all of them are ideal. One option everyone should avoid is a timeshare. This article overviews three things to know before getting a timeshare. After reading, you’ll realize just how bad these investments are.
Maintenance Fees & Interest Rates
Timeshares are incredibly costly investments. People don’t realize that there are more expenses than just the initial down payment. Timeshare contracts also include maintenance fees and high-interest rates. Maintenance fees cover upkeep expenses for your property. These fees are rarely stagnant—they can increase every year you’re under contract. Also, most of what this money covers should be included in the original deal. Interest rates for timeshares are astronomical. Most people have to take out a loan to get a timeshare, and the interest rates on these loans can drive people to bankruptcy.
Timeshare owners can’t visit the property whenever they want. Timeshares operate on either a fixed or floating schedule. A fixed schedule means that owners will stay at the property the same week every single year. There’s no adjusting the timeframe. A floating schedule, on the other hand, allows for a little more flexibility. In this option, people can choose a different week to stay at the location. However, they must decide quickly because popular dates fill up very quickly. If you aren’t a fan of a rigid schedule and you want to vacation at your own leisure, then a timeshare isn’t right for you.
Impossible to Exit
Another vital thing to know before getting a timeshare is that it’s nearly impossible to get out of the contract. Salespeople put conditions in the fine print that make it incredibly challenging for people to remove themselves from the agreement. Moreover, these companies will hound you if you fall behind on your payments. A timeshare foreclosure is detrimental to one’s credit and can impact their ability to get a loan in the future. Think twice before signing on the dotted line. You’re ultimately putting your financial future at risk.