Here’s the kicker with maintenance fees: You have to pay them as long as you own the timeshare. That’s right—even if you pay cash for your timeshare or membership, or pay off your loan, you’ll still owe annual maintenance fees. Alicia, a member of our Ramsey Baby Steps Community on Facebook, found that out when she paid off her vacation club membership in 2021. She called the club company after making her final payment and asked if she’d still owe her $875 maintenance fee. Spoiler: She did. “I paid it off two years early, then I asked, ‘Do I still have to pay the maintenance fees?’ And they said yes,” Alicia said. “I get irritated when we have to hit ‘submit’ on the payment.” Point Redemption Fees Somehow, there’s still another fee left to go over, and this one is the most ridiculous of them all. A lot of vacation clubs operate based on a points system. Each year, members are awarded a set number of points. Then, when a member wants to take a vacation, they redeem those points to book time at a property. Here’s the problem: Sometimes, vacation clubs charge their members a fee to redeem their points. That’s right—you have to pay even more money just to use the points that you already paid for! It’s complete nonsense, right? And yet, plenty of people sign up for these plans year after year.
This is just dumb, folks. Don’t fall for this garbage.
Are Vacation Clubs Worth It? No! One more time for the people in the back: No! One more time for everyone else who still didn’t hear: No! Even if you stumble onto a timeshare or club that isn’t a scam, it’s still a horrible financial decision. Let’s take a look at why. For this example, we’ll say you bought a vacation club membership and agreed to pay a $400 monthly payment over 15 years with a $1,000 annual maintenance fee. Over the course of a year, that comes out to $5,800.
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