Timeshare Loan = Bad Debt

Image source: https://www.suntrust.com/Static/Images/loans/loans-other-fc-unsecured-ls-adoption-700x294.jpg

Many timeshare salespeople claim that timeshares are good debt because they are a financial funding (they are not, timeshares are a purchase). They often make statements that the timeshare is a deeded property and can be resold at a higher value. In truth, timeshares are not deeded properties and they lose significant value over time. Timeshares in Mexico are contracts for use of a property for a fastened period of time, and as such, the worth of timeshares depreciates over the years, as the amount of use remaining diminishes. This makes timeshares an unpleasant debt, and the salesmans claims of a good financial funding a form of timeshare fraud.

As the promise of rental income is a extremely popular form of timeshare fraud that the salespeople use to sell more timeshares, 1000s of people find themselves stuck with timeshare contracts with payments that are much greater than they can really afford.

Good debt definition

Bad debt definition

Timeshares secondary market value

Many financial advisors also state that debt that is tax-deductible can render benefits to the consumer as they can offset the interest in tax savings in order to make a really apt financial funding. A popular timeshare scam is for the timeshare salesperson to claim that the purchase is tax deductible in the US or Canada. This is a fraudulent statement. Timeshare purchases made in Mexico are not tax-deductible in the US or Canada.

Timeshare rental

Unfortunately, the timeshare industry has contributed to this negative debt. Our associates at Mexican Timeshare Solutions thought we would take this opportunity to differentiate between good and negative debt, and why timeshares has to be categorized as negative debt.

Misrepresenting timeshare as being tax deductible

Bad debt can be defined as purchasing something on credit that will reduce in value. Not only does the purchaser lose the worth of the purchase, but also the interest paid to sustain the debt with the creditor. As many timeshares in Mexico are sold unethically, the definition of negative debt is compounded even further as the purchasers are chargeable for the debt of something that is not what was promised, and holds little to no value.

Timeshares hold a best interest rate

Another popular timeshare scam is the promise to lease out the timeshare weeks for financial gain. With this verbal promise in mind, many purchasers overextend themselves to make the timeshare purchase, thinking that the profits will hide the timeshare contract payments. Whenever making a massive financial funding, it's vital to have in mind the debt to income ratio and whether the client can afford the payments if the rentals do not occur.

Author's Bio: 

If you feel you've been coerced into purchasing a timeshare under false pretenses, contact us at Mexican Timeshare Solutions nowadays for a free consultation on how to cancel your Mexican timeshare contract and relieve yourself of the negative debt.

While the thought of good debt vs. negative debt is very simple and logical, a collection of people make quick financial judgements when they are on vacation, let their guard down, and are pressured by carefully crafted sales techniques.We urge people to have in mind their financial ability to pay for the timeshare, and lookup the company that they are investing in, before making a financial decision that will affect them for a long time.

About Mexican Timeshare Solutions:
Our objective is to assist timeshare purchasers who feel they had been scammed or taken advantage of by fraudulent salespeople. No upfront fees for our services cancelling timeshare frauds. We offer a free consultation and we do not relaxation until get your cancellation.

In these recent times of monetary uncertainty, over-extension of debt has caused financial disaster for 1000s of people in North America and around the realm. Learn why timeshares are negative debt.

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

Good debt is the purchase of something that will increase in value over time and render the owner profits; for example, the purchase of a house, or an education. Although the purchaser must pay the preliminary price plus interest to sustain the debt, the overall outcome is positive because it increases the persons earning potential or wealth.