What happens if you don’t pay your timeshare is a question crops up surprisingly frequently on timeshare forums and complaint sites, and while it is often a question placed by cancellation scammers looking to drum up business, sometimes it is posted by a worried consumer looking for a way out. If you are worried about what will happen if you don’t pay your timeshare, please read on.

What will happen if I don’t pay my timeshare?

If you are one such worried client look no further; we are here to tell you the truth about what could (and would eventually) happen if you were to default on your timeshare loan repayments and/or maintenance fees.

If you forfeit when it comes to either your maintenance fees or loan repayments there will be consequences. If you think that you are beginning to struggle with the costs you should do two things straight away;

1) Speak with your provider to see if you have any options that might be of help.

2) Arm yourself with knowledge regarding what is likely to happen if it all comes to the worst case scenario.

The consequences of defaulting on your maintenance fees as opposed to your loan may be less immediately severe, but there are still consequences. Of course, if your finances improve you will likely find it much easier to get back up to speed with your maintenance fees than the loan repayments.

What happens if I don’t pay my timeshare maintenance fees?

The most obvious consequence is this; most timeshare providers will not let you use your timeshare if you are even one month behind on maintenance fees. There is usually also a delinquency fee, interest on overdue balances, and a reinstatement fee once you do get back up to speed. If things go too far and you show no interest whatsoever in meeting your responsibilities your debt could be sold to a collection agency.

 What happens if I don’t pay my timeshare loan repayments

Whilst defaulting on either payment is not desirable, it would be fair to say that failing to make your loan repayments is the more instantly severe of the two. In fact, it’s much like defaulting on the mortgage; foreclosure and legal repercussions are very real possibilities. Likewise your debt is likely to be sold to a debt collection agency if you do not make an attempt to pay up what you owe.

Debt Collection Agencies

Debt collection agencies are a great deal less friendly than the timeshare companies that they buy your debt from. When they get involved you should prepare yourself for harassment, legal proceedings, and involvement from the Internal Revenue Service (which will make investment in the future very tricky).

Your credit rating when you don’t pay for your timeshare

Of course it goes without saying that your credit rating will be negatively affected if you should not rectify the situation pretty quickly. If you do not the consequences can be a dramatic deterioration which makes it harder to get credit in the future.

Beware timeshare cancellation scams

Whatever happens, do not trust cancellation companies who tell you that nothing will happen if you don’t pay your timeshare. These individuals will try to convince you that there is a way in which you can simply make it all go away. They will claim to offer services that no-one can provide (for a fee of course) and prey on your fear of debt, credit score damage, and legal consequences. Do not believe them! If you are within your recession period you don’t need them, and if you are not they cannot help you!

So, as you can see, there’s no magic solution, and no happy ending when you simply stop paying your timeshare loan repayments or maintenance fees. If you feel you are going to run into trouble talk to your provider ASAP, and see if they can work out a solution with you.