Thinking about walking away from your timeshare? Learn what really happens if you stop paying and what to do instead.
Introduction
Timeshare payments can feel never-ending. If you’re thinking of stopping your payments altogether, it’s important to understand the risks and consequences involved.
- Late Fees and Collection Calls
Once you miss a payment, late fees will begin adding up. The developer or their collection agency will start calling to recover the debt.
- Damage to Your Credit Score
Failure to pay your timeshare loan or maintenance fees can result in negative marks on your credit, especially if the debt is reported to credit agencies.
- Foreclosure or Legal Action
In some cases, developers will foreclose on your timeshare, which is a legal process that can also severely damage your credit and cost you money in court fees.
- It Becomes Harder to Cancel
Unpaid dues or defaulting on a loan can complicate the cancellation process. Exit companies may charge more or refuse cases in default.
Conclusion
Stopping payments may seem like the only option, but it can create bigger problems. Consider a proper cancellation strategy to avoid legal and financial trouble.
