After tapping into an enormous amount of patience, you’re finally free and clear of timeshare ownership. Whether you cancelled immediately or made the decision after many hope-filled years, exiting a timeshare contract can be a huge relief. Not only have you halted monthly payments and perpetual fees, but you’ve eliminated the frustrations of hindered vacations. There’s nothing worse than spending a ton of money on something that never seems worthwhile. Especially when you’re forced to pay for it. Aside from routine costs, the repercussions of walking away can be disheartening to say the least. But that season of your life is over now and many of you are wondering what to do with the extra cash.
Before Spending Your Extra Cash After a Timeshare Exit..
For starters, jot down lessons learned so you don’t make the same mistakes again. There’s a big difference between forgetting about the timeshare and learning from it. Look, vacationing is never going to be cheap. You should know by now that affordability doesn’t necessarily mean you’re getting the “best deal.” In most cases, you get what you pay for. At the same time, the failed timeshare experience should give you an enlightened perspective on travel expectations. Use the past purchase to help you determine what you want out of a vacation and make sure the product matches the description. Keep in mind, plenty of scams populate the travel industry.
With that being said, exiting a timeshare contract has probably caused you to consider getting your finances back in order. Most timeshares end up being a lot more expensive than buyers originally planned. After interest, the average timeshare price tag ends up being around $40,000. Over 10 years (which a common repayment period), this is about $333/month. When you add in annual fees, the monthly cost inches closer to $450. While it may be tempting to reallocate these funds after cancellation, establishing a plan, coming up with goals and monitoring your finances is the fastest way to alleviate a loss and the regret that comes with it.
What You Can Buy With Timeshare Savings.
Even though you may already have a wish list, we thought it would be fun to point out the types of things you can purchase once you’ve been relieved of the perpetual obligation. Since most people aren’t prepared for annual maintenance fees (or an unexpected assessment), we’re going to assume your original budget for the timeshare was $350. Keep in mind that exiting the timeshare contract actually saves you quite a bit more. But aiming low will help you understand the impact that cancellation can make.
All things considered, we’re going to list some items you could buy 6, 12, 24 and 36 months after you’ve completely paid off timeshare expenses. This includes any financed amounts to cancel it. The longer you’re able to save, the more capabilities you’ll have. These opportunities should create a little excitement around your decision.
6 Months After Exiting a Timeshare Contract Saves You $2100.
One of the biggest drawbacks of vacationing is the simple fact they always come to an end. Although it tends to be quite expensive, people still go. The national average for one person to go on a week-long vacation is $1,145. Unless you’re traveling alone, $2100 isn’t going to get you very far. So what’s the point of wasting this amount on a lackluster experience just to get out of town? Saving for another 7 months will give you enough to take your family of 4 on vacation (average cost is $4,580). At the same time, there are plenty of purchases you can make with $2100 that don’t expire after one week. Here are a few..
- Minor home improvements (landscape, security systems, etc..)
- A new purebred puppy for the family.
- A smaller off-road vehicle or watercraft (dirt bike, jet ski, etc..)
- High-end electronics (camera, computer or TV’s with surround sound).
- New home appliances (refrigerator, washer, dryer, etc..)
- Diamond jewelry and other gifts for a spouse or loved one.
- New furniture (kitchen table, sofa or patio sets)
- A premium massage chair.
Aside from vacationing, there are also some additional short term purchases that could be worth it for $2100.
- An hour-long helicopter tour for 4-6 people.
- Enrolling in classes for an online degree.
- Sponsor a club, sports team, animal shelter or other non-profit.
- Paying off debts.
Keep in mind, these are all things you can purchase with the amount of money it costs to own a timeshare for 6 months. Some people aren’t even able to book their annual vacation after paying double this amount every year due to timeshares overselling their inventory.
$4200 Will Remain in Your Bank Account After One Year.
Buying a timeshare causes many people to forget about their way of life prior to the purchase. Some of you have been timeshare owners for decades and are used to setting aside the monthly amount to avoid additional fees (or the thought of foreclosure). It can be tough to adjust properly after exiting the timeshare contract. But those that make the transition seamlessly tend to see an impact other areas of their lives as well – mainly regarding self control. So if you’re able to avoid major purchases for the first year, you’ll find yourself with a nice wad of cash. If saving for a year was long enough, here are a few ways you can spend $4k+.
- 3-4 Annual Signature Passports to DisneyLand.
- Minor home improvement or small remodeling projects.
- Nosebleed tickets to the Superbowl or premier seating at another major sporting event.
- An off road razor, motorcycle or ATV.
- A new bedroom set.
- Attend a world class seminar or receive personal development training.
- A riding lawn mower.
- Camping equipment and a used fishing boat.
- A golf cart with a solid set of clubs and a tee time.
24 Months After a Timeshare Exit Gives You An Extra $8400
After you’ve gone a year and a half, you’ll be able to consider vacation packages that are a big step above what you were used to with the timeshare. International travel or popular U.S. destinations can now be considered if you’re traveling for two. With a little over $8,000 in the bank, you could even think about buying a nice used car or truck. A smaller travel trailer could even also be had for this amount of money.
Aside from higher end products from the lists above, you could also put money towards equipment, electronics or technology – whether your need it for business or personal use. For some families, this might be enough to cover Christmas gifts. You could even consider buying a decently bred horse (you might want to have a stable first though). $8400 could be used to add a lot of value to your home. Maybe you’ve been waiting for enough money to improve your outdoor living space. It’s enough to start considering a full room remodel. After 2 years, these are all possibilities once you’ve been relieved of your timeshare obligation. Waiting 2 more years to cancel can really leave you wondering about what could have been.
3 Years Post Timeshare Exit, $12,600 is Saved.
If you’re serious about saving your money, there are endless ways you can reap the rewards of exiting a timeshare contract. After 36 months, you’ll save nearly $13k by escaping the clutches of ownership. This is enough to put a down payment on a house, buy a new car or plan a real vacation. You could even re-carpet your house or invest in some major home improvements that you’ve been pondering for a while. Although a swimming pool is probably out of the question, you could still invest in a hot tub or small pond if you’d like. Maybe you could even get the band back together, who knows!
Either way, establishing a budget, setting goals and managing your finances will put you in position to use your hard earned money for something worthwhile. Instead of continuously funneling capital into something that was never fruitful, you made an intelligent decision that’s benefiting your future. While not all timeshares are bad, some can be absolutely devastating. This is why the disclosure of actual costs is so important.
To put this into perspective, most timeshare owners make the purchase thinking it’s going to only cost them $20,000. In just 3 years, most people have unexpectedly surpassed that amount. Imagine what can occur after a decade? With maintenance fees steadily increasing, who knows what the total of the perpetual purchase could be. Exiting a timeshare can be a life-changing decision.
Exiting a Timeshare Contract with VOC.
If you’ve recently exited your timeshare, congratulations. If you’re considering doing so, then we’d love to tell you more about what cancellation entails. During our Free consultations, we focus on learning more about your situation prior to explaining the qualification process. This helps us best advise you on next steps. Some owners don’t even need us to help them legally exit a timeshare contract. At the same time, if you believe canceling is your only option, you can get started by proceeding to our qualification form below.
