Question about refinancing a timeshare loan @ 13.99%

[gu014]

Hello,
I have a Mariott timeshare loan ($19k) at 13.99% and I am looking to refinance. I am closing on a house this week so I am waiting until after closing to refi. I am considering the following options:

• Transfer the $19k to a 0% credit card for a 15 month term and pay the maximum transfer charge of $99. After the 15 month intro term I would take out a HELOC.
  
• Transfer the $19k to a 0% credit card and keep moving it around to another 0% card and simply pay the transfer charges.
  
• Transfer the $19k to a low fixed rate credit card(3.99%, 4.99%).

Obviously I would lose the ability to write off the interest by transferring the $19k timeshare loan.

Any advice would be greatly appreciated as i obviously need to get rid of the 13.99%.

Best Regards.

[creditcardfree]

If you are able to move the money from one 0% card to another then I'd do that. If not, the fixed card sounds like a much better deal than 13.99%

[disneysteve]

My first suggestion would be to never buy a timeshare, and if you absolutely can't help yourself, do so on the secondary market. Too late for that advice, though.

Although the 0% CC would save you the most money, you always run the risk of not being able to get another 0% card when you need it, so that could be a problem.

The low fixed rate card would be the safest way to go with a CC.

How much equity will you have in your new home in 15 months? If you could turn this into a HEL, the interest becomes deductible which isn't as good as the 0% CC but is probably about the same as the fixed rate CC.

[glock35ipsc]

Personally, I would sell it. Timeshares are a terrible investment.

[disneysteve]

Personally, I would sell it. Timeshares are a terrible investment.

Not an option, I'm sure. OP owes $19,000 on something that is probably only worth about $8,000 on the secondary market.

Timeshares are not a terrible investment. They are not an investment at all. They are a luxury purchase.

[glock35ipsc]

Timeshares are not a terrible investment. They are not an investment at all. They are a luxury purchase.

Yeah, true. Although it's amazing how many people buy them calling them an investment. A friend of mine has one and swears he will make bank on it when he sells. I keep telling him good luck selling it. I know he will be sure to ask more than he paid for it, since it is "such a good investment!" in his mind.

[disneysteve]

The only timeshare that has consistently held it's value is the Disney Vacation Club. They have yet to hit the saturation point where supply is greater than demand, though knowing how Disney typically does things, they will eventually over-saturate the market and see demand drop off.

[nextel500]

Hello,
I have a Mariott timeshare loan ($19k) at 13.99% and I am looking to refinance. I am closing on a house this week so I am waiting until after closing to refi. I am considering the following options:

• Transfer the $19k to a 0% credit card for a 15 month term and pay the maximum transfer charge of $99. After the 15 month intro term I would take out a HELOC.
  
• Transfer the $19k to a 0% credit card and keep moving it around to another 0% card and simply pay the transfer charges.
  
• Transfer the $19k to a low fixed rate credit card(3.99%, 4.99%).

Obviously I would lose the ability to write off the interest by transferring the $19k timeshare loan.

Any advice would be greatly appreciated as i obviously need to get rid of the 13.99%.

Best Regards.

Is the fixed rate for life? If yes then I would do that. "[*]Transfer the $19k to a low fixed rate credit card(3.99%, 4.99%).[/LIST]" i would do that.

[b4freedom]

[QUOTE=gu014;173871]Hello,
I have a Mariott timeshare loan ($19k) at 13.99% and I am looking to refinance. I am closing on a house this week so I am waiting until after closing to refi. I am considering the following options:

QUOTE]

What is the term of the loan and the monthly payment? Where is the timeshare? Marriott timeshares in Hawaii and Aruba tend to hold their value better then most.

Dealing with CC is always dangerous! Although 13.99% is a bad rate, CC like to spring hidden traps. Read all the fine print. You don't want to end up in a situation where you're paying 24% to 30% because you were late on your cable bill (yes, some CC will jack your rates up if you default on anything not even remotely related to the CC company).

[AmyBlue]

Timeshare companies often set up financing for their clients to facilitate the purchase. They claim that the financing is low-interest. In reality, many timeshare companies in Mexico have relationships with large credit card companies, such as Bank of America. They set up credit cards for the new buyers, with a low interest rate for 6 months. After the 6 month period, they increase to very high rates, often over 20 - 25%. As these are large purchases, most people do not pay the entire balance before the due date and consequently are required to make high interest payments. Every month that they timeshare owner makes a partial payment, they are charged interest. This is considered bad debt as the value of the timeshare continues to lose value, and the amount being paid for the timeshare scam continues to increase.