"Committing to a finance package that is not appropriate to your financial situation can turn into a long-term problem, and one that can seriously damage your overall creditworthiness." -CEO of Wesley Financial Group Chuck McDowell
NASHVILLE, Tenn. (PRWEB) November 18, 2012
Rental revenue from the timeshare industry dropped about $4 billion nationwide after the economic collapse in 2008. A recent story in the Orlando Business Journal suggests that the drop had to do with the lack of financing options available. With the timeshare industry looking healthy again and revenues on the rebound, the story hints that the increase in revenue is likely due to the recent availability of new financing options.
Wesley Financial Group CEO Chuck McDowell responds to this news by offering his take on the pros and cons of financing a vacation timeshare.
McDowell speaks from considerable experience with the timeshare industry. His firm, Wesley Financial Group, helps timeshare owners void contracts that were entered into as a result of fraud, misrepresentations or a narrowly defined type of activities that were part of the sales presentations, closing discussions and/or during the term of the relationship itself. McDowell’s firm has helped hundreds of timeshare owners eliminate over one million dollars of debt.
“Buying a timeshare is similar to buying an automobile – it’s usually a depreciating asset – so, unfortunately, its value rarely increases over time. Keep this in mind as you are thinking about buying a timeshare so you remember that it is not likely to be an investment like a home,” said McDowell. “But, if you decide to move ahead with the purchase, look carefully at the financing options available to you. Committing to a finance package that is not appropriate to your financial situation can turn into a long-term problem, and one that can seriously damage your overall creditworthiness.”
When it comes to deciding between the number of available financing options, McDowell advises staying away from exotic arrangements and, instead, pursuing one of the more common finance options. Among these are home equity loans and personal loans.
“You may be able to obtain a home equity loan that uses the equity you’ve built up from your primary home to purchase your timeshare,” said McDowell. “This could save you a bundle on interest, but you also run the risk that if you default, you could lose your primary home.
“If a home equity loan sounds too risky for you, taking out a personal loan through your bank will allow you to keep your home equity intact and still, possibly, get a reasonable interest rate,” said McDowell. “Personal loans may also be an option for non-homeowners, who obviously can’t set up a home equity line.”
As the story in the Orlando Business Journal stated, more timeshare companies are offering financing options for buyers. However, McDowell warns against taking this option without carefully examining the offer, since loans from timeshare sellers can come with high interest rates. “Obtaining a loan from a timeshare seller may be the easiest route to take, but not necessarily the best,” said McDowell. “Timeshare sales people may be eager to approve potential buyers on the spot. However, high-risk borrowers, who tend to be attracted to this kind of financing, can drive interest rates up to as high as 15 percent.”
For more information about Wesley Financial Group, visit http://www.wesleyfinancialgroup.com. To contact Wesley Financial Group CEO Chuck McDowell, call 615-288-2000. Chuck McDowell, Wesley Financial Group LLC and its employees and representatives provide accurate and authoritative information and consultation about the timeshare industry. They are not engaged in the practice of law and cannot render legal advice.