Timeshare Debt: What It Is and Why It Matters

Timeshares can look like a dream vacation spot, but many owners end up with debt they never expected. The first sign is a bill that keeps growing even when you’re not using the property. Maintenance fees, special assessments, and interest on financing can add up quickly. If you ignore these charges, you can lose the property and your credit score takes a hit.

What Creates Timeshare Debt?

Most debt starts with the upfront purchase price and the loan you take to pay it. Lenders often require a high loan‑to‑value ratio, so the interest rate can be steep. After the purchase, the developer adds yearly maintenance fees that usually rise with inflation. In 2025 the average yearly cost of a timeshare is around £1,200 to £2,500, and that figure doesn’t include special assessments for repairs or upgrades.

Another hidden trap is the resale market. If you try to sell your share, you’ll likely get far less than you paid, leaving you with a balance on the original loan. Some owners try to refinance, but the new loan often carries the same or higher rates because the property’s value is tied to a niche market.

Inheritance can also create debt. When a parent passes a timeshare to a child, the new owner inherits the ongoing fees and any existing loan balance. If the heir isn’t prepared to cover those costs, the debt can quickly become unmanageable.

Steps to Get Out of Timeshare Debt

First, get a clear picture of all the numbers. Write down the original loan amount, current balance, interest rate, annual maintenance fees, and any upcoming special assessments. Knowing the total helps you decide whether to keep, sell, or exit.

If you can afford the payments, consider negotiating with the developer. Some companies will lower the maintenance fee or waive a special assessment if you agree to a longer contract. It’s worth a phone call before you assume the worst.

When selling, list the timeshare on reputable resale platforms and be honest about the fees. A realistic price can attract buyers and prevent the debt from lingering.

If selling isn’t an option, look into a deed‑back program. Many developers offer a way to return the timeshare for a nominal fee, which can stop the recurring charges. Read the contract carefully; some programs require you to cover any remaining loan balance.

Finally, protect your credit. Keep making at least the minimum loan payments until the debt is resolved. Missing payments can stay on your credit report for seven years, affecting future loans and even rental applications.

Timeshare debt doesn’t have to ruin your financial health. By understanding the true cost, staying on top of fees and exploring exit options early, you can avoid the pitfalls that trap many owners.