What's your biggest financial blunder?

[Weird Tolkienish Figure]

I got talked into a timeshare YEARS ago. Wasn't expensive $2k? But the real money suck was the annual fee to "keep" and use it. And we never used it. OMG biggest waste of money. We couldn't give it away until finally I found a company willing to take it. It only took me many years I'm still trying to figure out how many years.

But can I get a slap upside the head for that mistake? I think the fee was $300/year. The stupidity of it still rubs me the wrong way.

Yeah I've heard you can't even get rid of these things, what happens if you just stop paying for it?

[FLA]

First thing that comes to mind is being talked into a whole life policy many years ago. .

did that when first married, could not convince my husband that this is not what we should be doing. Maybe had it for 2 yrs, someone else told him the exact same stuff I did and I had books backing me up, he's so glad this guy helped him, let's get term and save money!

yeah, dip****, why don't we do that? lol

[LivingAlmostLarge]

I don't know. It never occurred to me to not pay on the timeshare. Luckily we had it only 2 years. YIKES!

[QuarterMillionMan]

Regarding stopping payments on timeshares, by the way I don't have a timeshare, but if I did have a timeshare and regretted buying it, I would consider just stopping payments on it. According to this website it illustrates the consequences of stopping payments on a timeshare. Looks like a freaking nightmare to me.

http://tug2.net/timeshare_advice/stop_paying_for_timeshare.html

1) the resort will report it to all credit bureaus
2) the resort will send it to collections
3) the resort will tack on late fees & penalties
4) the resort will pursue legal action to foreclose which will add attorney fees, court costs, document filing costs, etc.

[Weird Tolkienish Figure]

Found this quote on another forum (re: Timeshares):

I tried to GIVE it back to the timeshare company and they would not take it. I tried to sell it and nobody wanted it. Look on Ebay and you can buy one for 99 cents!!! Yes, it is expensive. {I was taken for $500 and $300 by others. I found out what I got from my money is my name/timeshare was listed on a bulletin board at a time share convention.} This is a lot more. I can go into detail what steps I've been through so far.

[disneysteve]

what happens if you just stop paying for it?

The same thing that happens if you stop paying your mortgage. They foreclose and destroy your credit. Your timeshare contract is a legally binding deal. You can't just walk away without any consequences.

[Weird Tolkienish Figure]

The same thing that happens if you stop paying your mortgage. They foreclose and destroy your credit. Your timeshare contract is a legally binding deal. You can't just walk away without any consequences.

I wasn't really talking about being irresponsible per se... I was just wondering what happens if nobody lets you leave these things? I understand that management companies often times won't take them back, do you have to pay the maintenance fees in perpetuity?

[disneysteve]

I understand that management companies often times won't take them back, do you have to pay the maintenance fees in perpetuity?

Yes, when you buy, you agree to pay the annual maintenance fee indefinitely.

[bjl584]

I have a few ex girlfriends that rank up there.

[Like2Plan]

I wasn't really talking about being irresponsible per se... I was just wondering what happens if nobody lets you leave these things? I understand that management companies often times won't take them back, do you have to pay the maintenance fees in perpetuity?

It depends on the contract that you signed. Some time shares are fixed length, so when the contract ends there is no more time share and of course no more maintenance fees.

[bennkar]

I got talked into a timeshare YEARS ago. Wasn't expensive $2k? But the real money suck was the annual fee to "keep" and use it. And we never used it. OMG biggest waste of money. We couldn't give it away until finally I found a company willing to take it. It only took me many years I'm still trying to figure out how many years.

But can I get a slap upside the head for that mistake? I think the fee was $300/year. The stupidity of it still rubs me the wrong way.

My mother tried to deed me her timeshare a few years ago and instead I decided to pay the maintenance fee for a year or two to see what it was like. Now after re-roofing her house I have my mother paying the maintenance fee through 2020 for me to use for free. Basically kicking the can down the road so to speak. Hopefully by then I'll be close enough to retirement that I can decide if buying in to this system (they now use points) will be a benefit through my GF's and my retirement.

Having unlimited time and pre-paid high end vacation locations - might be a winning combination. Like anything - this applies to me, I wouldn't advise most people to do this.

[riverwed070707]

Ditto on buying our first house. We bought from a co-worker of DHs in 2008. He told us it was worth $185k and he'd sell it to us for what he owed on his mortgage which was around $160. Thought we were getting a smoking deal, too young and dumb to actually have it appraised. We've tried to sell 3 times now and despite having dumped close to $30k in renovations into it we've never had an agent who was willing to list it for more than $170k. We like the house and its worked for us (although if given the opportunity I'd love to relocate at some point which is why we've tried to sell) but we definitely did not get a deal and we'll likely lose money when we eventually do sell. Live and learn.

[Like2Plan]

Having unlimited time and pre-paid high end vacation locations - might be a winning combination. Like anything - this applies to me, I wouldn't advise most people to do this.

This reminds me of a post I saw (on another discussion board) where the husband and wife lived in their timeshares for a year. The experiment worked well enough that they continued for a second year. They spent years planning for it -sold their house, gave some of their stuff to their kids and put the rest in storage. They went all over. It was a real fascinating story. But, I have no idea what happened after they were done traveling--and all those pesky maint. fees which had to be substantial.

[bennkar]

Oh, for my biggest blunder.... probably my prior marriage. Sad to say, but at the end it was worth it to give her lots of money to say good bye. There were lots of other problems, but financially, whew that was a killer.