What are the consequences if I don't pay my timeshare?

What are the consequences if I don’t pay my timeshare?

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Frequently asked question: What are the consequences if I don’t pay my timeshare?

This question can be seen fairly frequently on various timeshare forums and complaint websites where it will have been posted either by a timeshare owner who may be starting to worry due to financial stress, or by cancellation scammers looking to drum up “business”.

In either case, however, the information given in return is not always 100% truthful or unbiased. This is why we’re compiling the basic facts here in this article; knowledge is power, and we’re offering you an understanding of what the consequences will be if you do not pay your timeshare.

What are the consequences if I don’t pay my timeshare?


If you forfeit on either your loan repayments or your maintenance fees there will be consequences. The most obvious consequences if you don’t pay your timeshare is a hit to your credit rating, and a mounting of debt, but there are other (more lasting) factors to consider. You should weigh up your personal circumstances and the risks, talk to your provider, and certainly prepare for the consequences if there’s no way to avoid missing a payment or two.

The consequences if you stop paying for your timeshare

The consequences which will occur if you do default on your loan or maintenance payments are pretty obvious; your credit score will take a hit, debt will mount, and your ability to use your timeshare will be affected.

Consequences of not paying your timeshare maintenance fees

Falling behind on your maintenance payment is not desirable, but the consequences are less immediately severe than if you fall behind on your loan repayments, but nonetheless there are consequences. First and foremost, most providers will not allow you to use your timeshare if you are behind on your payments. Plus, there will be delinquency fees, interest on the outstanding balance (taken monthly or daily), and reinstatement fees when you do get started again. If you do not pay your dues your debt could also be sold to a collection agency.

Consequences of defaulting on your timeshare loan repayments

Failing to meet the repayments on your timeshare loan is more immediately serious; much like defaulting on a mortgage the end result could easily be legal action and foreclosure. This is why it is so key that you let your timeshare provider know if you think you are going to miss a payment for any reason. Falling behind on your timeshare loan will mean damage to your credit rating, and could also end up with your debt being sold to a collection agency.

Debt Collection Agencies

Debt collection agencies are a great deal less friendly than the timeshare companies, and when your debt is sold to them your credit score immediately takes a hit. You could be reported to the Internal Revenue Service, be prevented from making future investments, and you will have to prepare for intense harassment until your debt is paid.

Your credit rating

Your credit rating will be affected by forfeiting payments, but if you get back on track quickly you could mitigate some of the damage. If you are unable to do so your ability to get credit in future will be severely limited.

Beware timeshare cancellation scams

One of the lesser known, but potentially disastrous, consequences of defaulting on timeshare repayments is the attention you will begin to receive from cancellation scammers. These individuals will pretend to offer you a way out; a way by which you can save your credit score and make it all go away… Sadly this “magic” solution is just that; all illusion. They will leave you in worse trouble than before, and after paying their fees you’ll have less money with which to solve the mounting problems.

So, as you can see there really is no happy ending when you stop paying your timeshare fees and repayments; just like a mortgage they are big commitments where the risks and rewards are of equal magnitude.

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