One reader has shared his method for dealing with Timeshare Presentations:
Some states, such as Hawaii, have a rescinding period to cancel a Timeshare purchase. So that’s what I do, I just sign the contract and then fax in to cancel it a few days later. That way I don’t have to confront the sales person right there. They will however call you for a few days and leave nasty messages though.
I do the fax at a notary place with stamp and everything. I then send a registered package of it to them with signature confirmation. I sent a fax because there was a 7 day or perhaps a 10 day cool down and I did it on the last day. I had to make sure they got the notice on that day. If there is a longer time, then you don’t even have to fax it just mail in the notarized cancellation.
While getting out of a timeshare is a smart move, it’s terrible advice to suggest that people just sign the purchase contract in order to get out of a sales pitch.
Timeshare companies are generally in business to sell timeshares and will purposely work to prevent you from canceling, sometimes employing illegal methods to do so. Besides, the last thing any one wants to do is receive angry messages from a salesman.
Realizing that you have overpaid on a timeshare which you cannot afford is the first step to escaping it. Many who have been in the same situation came to the unfortunate but correct conclusion that the best action to take is to sell the timeshare.
One reader had a timeshare at 16.9% interest on more than $10,000 borrowed. His advice follows:
My advice for you all is to sell the timeshare immediately!!! Your timeshare is generally worth about 25-30% of what you paid for if you’re lucky. While you are waiting to sell it, get a 0% balance transfer in order to pay off the balance and to stop the high monthly interest. Then, if you are able to sell it, use the money from the sale to pay down part of the debt. Finally, take a second job or work overtime to earn extra money to pay off the rest of the debt.
This is a painful process and I had experienced it. However, once you get through it, you will be able to sleep better at night. Take the loss as an expensive life lesson. Personally, I think the money that I lost from being stupid back then made me become wiser and helped me gain a lot more financially compare to the money that I lost.
0% credit card deals generally last a year, if you won’t be able to pay off the loan by then, consider a HELOC. You’ll be paying interest, but chances are it will be lower than the rate you’re now paying.
I was young and got suckered into a timeshare as well. I still have it, 20 years later. I believe I paid about $12,000 for a 1 Bedroom condo in Vail, CO – and that was back in 1988 when $12,000 was a lot of money. I ended up paying it off early, so I own it now, for what that’s worth.
$12,000! For the opportunity to essentially rent a single room in Vail. Let me guess, you didn’t even get a winter week.
Why anyone would purchase a timeshare in a ski region during a non-skiing week is beyond me. And even if you are getting a winter week, $12,000 is far too expensive when one considers the yearly ‘maintenance fees’ exceed the going rental rate.
Even if one has their heart set on staying in a particular location, it’s worth pointing out that most locations will offer rooms at only $99/night during late winter. Currently Christie Lodge is offering April rooms at a heavy discount. Don’t believe what salesmen tell you about the cost per night to stay in their lodges. Timeshares at retail price will never save you money.
One final thought, don’t forget that you can always rent timeshares on the secondary market. Currently a quick look on the Avon Craigslist yields the following ad:
Timeshare at Christy Lodge available to rent the week of August 30-September 6, 2008 (labor Day week-end). Sleeps 4 with full kitchen facilites. $400 for full week.
$400 vs ($12000 + recurring maintenance fees of at least $400 + other fees + the interest that could have been earned on $12,000)… suckered indeed.
