The Temptation to Stop Paying
When timeshare maintenance fees keep rising and you can't seem to exit, simply stopping payments might seem like an easy solution. However, this decision carries serious consequences that every owner should understand.
Immediate Consequences
Within 30-90 Days:
- Late fees added to your balance
- Interest charges begin accruing
- Collection calls and letters begin
- Account flagged as delinquent
Within 90-180 Days:
- Account sent to collections
- Credit score begins dropping
- More aggressive collection efforts
- Potential legal action warnings
Credit Score Impact
How Bad Can It Get?
- Delinquent timeshare accounts can drop your credit score 100+ points
- The negative mark stays on your credit report for 7 years
- Affects your ability to get loans, credit cards, and mortgages
- May impact employment opportunities
- Can increase insurance rates
Legal Consequences
What the Timeshare Company Can Do:
- Sue you for the full balance owed
- Obtain a judgment against you
- Garnish wages (in some states)
- Place liens on other property
- Pursue foreclosure on the timeshare
The Foreclosure Myth
Some owners believe foreclosure is a simple exit strategy. The reality:
- Foreclosure still damages your credit
- You may still owe a deficiency balance
- The process can take years
- Legal fees may be added to your debt
- It's not a clean exit
Better Alternatives
Instead of Stopping Payments:
Protecting Your Financial Future
Your credit score affects many aspects of your life. Before making any decision about your timeshare payments, consult with professionals who can help you understand all your options and their consequences.
A legitimate exit, while it may take time, protects your credit and provides a clean break from your timeshare obligation.
