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Financing Your Timeshare Exit
2 min readLast reviewed
Money questions shape every timeshare exit, especially when a loan is involved. This article covers how financing affects your options and offers cautions about borrowing to pay exit costs.
When a loan is attached
If your timeshare is financed, the outstanding balance usually must be paid off, refinanced, or settled with the lender before most exit paths can proceed. Developers and buyers generally will not accept a financed interest.
Ways to resolve the balance
Common approaches to the loan include:
- Paying the balance in full where feasible
- Discussing payoff or settlement options directly with the lender
- Exploring refinancing, weighing the total cost carefully
- A financial hardship review if payments are unaffordable
A caution about borrowing to pay exit fees
Some owners consider new debt to pay a large exit fee. Borrowing to pay an unverified company that guarantees results is especially risky. Weigh the full cost and consider speaking with a qualified financial professional first.
Protecting your credit
How you resolve the loan affects your credit. Paying as agreed protects it; default or collections can harm it. We never advise anyone to simply stop paying, because the consequences of default can be serious.
Sources & citations
- 1.FTC — Timeshares and Vacation Plans— Federal Trade Commission
- 2.CFPB — Consumer resources— Consumer Financial Protection Bureau
Written by
Consumer Education Desk
Timeshare Research & Reporting
Reviewed by
Compliance Reviewer
Consumer-Protection & Compliance Review
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