Investing in a timeshare is an excellent way to have your money work for you with regards to vacation expenses. In general, travel costs tend to only get higher with time so locking in low rates by investing in a timeshare is a great idea. Plus, nobody wants to have their vacation ruined with a dreary resort or hotel. To avoid a vacation disaster, purchasing a timeshare allows members to prepay for their future vacation at a resort that they know will be providing outstanding accommodation and amenities. In addition, timeshare owners will sign a membership contract that contains all the pertinent information about the fees to join, monthly fees, and maintenance dues. What if you don’t pay your timeshare dues? If you don’t pay your timeshare dues, you cannot use your vacation unit and other consequences will come. Meanwhile, read below about why you shouldn’t default on timeshare payments.

Don’t Default on Timeshare Payments

To start with, timeshare ownership is an investment where you buy weeks at a resort of your choice to spend a set amount of time at a vacation unit yearly. To become a member, you will need to pay a deposit, sign the membership contract, and you will have monthly timeshare payments to make. If a timeshare member breaks their contract and defaults on their timeshare payments, many consequences will come your way. For instance, your credit score will be affected negatively, which will later make it harder to get a loan. Legal action can happen as well which can add tons of financial stress and worry into your life. Instead, you should always make your timeshare payments on time, so you don’t default. That way, you can spend time at your vacation unit creating wonderful new memories with your loved ones on a regular basis.

Timeshare Payments & Maintenance Dues

Each timeshare provider will have a different payment agreement, but every timeshare requires maintenance dues to be paid by members that are used to keep the resort property in excellent condition. If you don’t make sure you are paying your timeshare payments and maintenance dues, then you will be in default on your timeshare. Delinquent fees along with interest fees will be added to your account as well. To learn your timeshare payment schedule, you can check your membership contract for all of the details. If your maintenance fees are not paid you will be unable to use your timeshare unit, and you will also have to pay a reinstatement fee as well. In addition, some timeshare providers will also sell your debt to a collection agency if they believe you have no intention of paying your maintenance dues and fees. Stay current on your payments and dues.

Negative Credit Score & Foreclosure

It is very important to have a good credit score. Do you realize what credit scores are used for? For example, if you want to get a loan to purchase a house, car, or even furniture, your credit score will be checked. If you haven’t made payments on time or have lots of outstanding debt, your credit score will be lower and you will be less likely to obtain a loan that you want or need. Likewise, if you default on your timeshare payments, the timeshare debt can be sold to a collection agency that will come after you collect the debt. Your credit score will be negatively impacted if you don’t make your timeshare payments. The collection agency can also sue you if you have defaulted on your timeshare payments, which will affect your credit score. You can also have your possessions have a claim filed against them, too.

Timeshare Cancellation Scams

Last but not least, timeshare cancellation scams have been known to occur to individuals who decided to default on their timeshare payments. For instance, there are timeshare cancellation scammers out there which are fraudulent timeshare cancellation companies that promise members they can cancel their timeshare legally. However, no timeshare contract can be canceled once the rescission period has passed, which is usually a few days after you sign your contract. Despite this fact, fraudulent timeshare cancellation scammers charge a large upfront fee, then disappear without providing any legitimate service.

Did this article help in explaining the types of consequences that could happen if you default on your timeshare payments? You joined a timeshare club so you could save money on your vacation expenses and to spend quality time with your loved ones. If you default on timeshare payments, you will lose all access to your vacation unit, risk foreclosure, affect your credit score, and become a victim to a timeshare scam. If you want to purchase a genuine timeshare in Mexico, call Garza Blanca Resorts today. Owned and operated by the award winning Tafer Hotels & Resorts, they have a high-quality timeshare program with thousands of happy members! Currently, they have 3 luxury Garza Blanca Resorts in top destinations in Mexico including Puerto Vallarta, Cabo San Lucas, and Cancun. Right now, all-inclusive travel packages are on sale and you should attend a timeshare presentation during your visit to learn more. Call them today to book a vacation to paradise!