Unfortunately, the timeshare industry

has contributed to this bad debt. Our associates at Mexican Timeshare

Solutions thought we would take this opportunity to differentiate between good

and bad debt, and why timeshares should be categorized as bad debt.

Bad debt definition

Bad debt can be defined as purchasing CAT5E Cable manufacturers something on credit that will decrease in value. Not only does the purchaser

lose the value of the purchase, but also the interest paid to maintain the debt

with the creditor. As many timeshares in Mexico are sold unethically, the

definition of bad debt is compounded even further as the clients are liable for

the debt of something that is not what was promised, and holds little to no

value.

Good debt definition

Good debt is the purchase of something that

will increase in value over time and render the owner profits; for example, the

purchase of a house, or an education. Although the purchaser must pay the

initial price plus interest to maintain the debt, the overall outcome is

positive because it increases the person’s earning potential or wealth.

Timeshare´s secondary market value

Many timeshare salespeople claim that

timeshares are good debt because they are a financial investment (they are not,

timeshares are a purchase). They often make statements that the timeshare

is a deeded property and can be resold at a higher value. In reality,

timeshares are not deeded properties and they lose significant value over time.

Timeshares in Mexico are contracts for use of a property for a fixed period of

time, and as such, the value of timeshares depreciates over the years, as the

amount of use remaining diminishes. This makes timeshares a bad debt, and the

salesman’s claims of a good financial investment a form of timeshare fraud.

Timeshare rental

Another common timeshare

scam is the

promise to rent out the timeshare weeks for financial gain. With this verbal

promise in mind, many clients overextend themselves to make the timeshare

purchase, thinking that the profits will cover the timeshare contract payments.

Whenever making a large financial investment, it is important to consider the

debt to income ratio and whether the client can afford the payments if the

rentals do not occur.

As the promise of rental income is a

very common form of timeshare fraud that the salespeople use to sell more

timeshares, thousands of people find themselves stuck with timeshare contracts

with payments that are much greater than they can really afford.

Misrepresenting timeshare as being tax deductible

Many financial advisors also state that

debt that is tax-deductible can render benefits to the consumer as they can

offset the interest in tax savings in order to make a wise financial

investment. A common timeshare scam is for the timeshare salesperson to claim

that the purchase is tax deductible in the US or Canada. This is a fraudulent

statement. Timeshare purchases made in Mexico are not tax-deductible in the US

or Canada.

Timeshares hold a high interest rate

Timeshare companies often set up

financing for their clients to facilitate the purchase. They claim that the

financing is low-interest. In reality, many timeshare companies in Mexico have

relationships with large credit card companies, such as Bank of America. They

set up credit cards for the new buyers, with a low interest rate for 6 months.

After the 6 month period, they increase to very high rates, often over 20 -

25%. As these are large purchases, most people do not pay the entire balance

before the due date and consequently are required to make high interest

payments. Every month that they timeshare owner makes a partial payment, they

are charged interest. This is considered bad debt as the value of the timeshare

continues to lose value, and the amount being paid for the timeshare scam

continues to increase.

While the concept of good debt vs. bad

debt is very simple and logical, many people make quick financial decisions

when they are on vacation, let their guard down, and are pressured by carefully

crafted sales methods.We urge people to consider their financial ability to pay

for the timeshare, and research the company that they are investing in, before

making a financial decision that will affect them for decades.

If you feel you have been coerced into purchasing a

timeshare under false pretenses, contact us at Mexican

Timeshare Solutions today

for a free consultation on how to cancel your Mexican timeshare contract and relieve yourself of the

bad debt.About Mexican Timeshare Solutions:Our goal is to assist timeshare purchasers who feel they were scammed or taken advantage of by fraudulent salespeople. No upfront fees for our services cancelling timeshare frauds. We offer a free consultation and we do not rest until get your cancellation.Contact:www.timesharescam.comToll-free: 888-275-3595Telephone: 714-277-3662Mexico: [email protected]