Dave Ramsey Speaks His Mind on Timeshares

Dave Ramsey, the respected financial writer, radio and television host featured on numerous media outlets including The Oprah Winfrey Show, 60 Minutes and The Early Show on CBS has something he would like to share about timeshares: “Timeshares are one of the biggest scams on the market today. Once you are stuck in one, you are stuck in a black hole.” Pretty strong words but for many timeshare buyers this statement sums up their experiences of “owning” a timeshare.

Ramsey point outs that there is fundamentally something very wrong with the logic behind timeshares:

“Let’s think about this for a minute. Why in the world would you pay thousands and thousands of your hard-earned dollars for a place with minimal square-footage that you MIGHT get the chance to visit for one week each year? Add to that the fact that you have absolutely no equity in the place. And you have to pay extra ongoing “maintenance fees”. And selling it is near impossible. And it’s basically just an expensive, ongoing headache. And, and, AND!

So all of the money that you could be saving for a wonderful vacation to anywhere in the world is instead going towards a timeshare vacation you may rarely, or possibly never, take. Or as Ramsey writes; “With timeshares, you’re just pre-paying your hotel bill for the next 20 years whether or not you use it.” In the past, timeshares provided vacationers with a bargain – especially on family travel. But now that there are so many inexpensive vacation packages available online – the idea of owning a timeshare in order to save on travel expenses is no longer relevant.

Ramsey advises that people save their money and put it to better use. He gives a compelling example of the benefits of using money that could have gone towards a timeshare but was instead invested in a smarter way:

“The average cost of a timeshare in the U.S. is $13,000. If you put that money in a mutual fund averaging 12% over 10 years, you would have almost $43,000. Pretty good. In 20 years, you would have over $141,000. Even better. In 40 years, you would have over $1.5 million! That’s a LOT of free money!”

Ramsey makes some good points but where his argument falls short is in its discussion of how to get out of a timeshare contract. He gives no viable options to those unsatisfied buyers looking to get rid of their timeshare.

If you no longer want your timeshare then the best way, and the guaranteed way, to finally be rid of your timeshare is to call Timeshare Relief and speak with one of representatives to find out if your timeshare qualifies for our program. Please call us at 866-797-0535 and find out how we can assist you.

One Response

  1. I love Dave Ramsey. But I find his views on time shares a little flawed.
    Firstly, time shares are for folks who actually TRAVEL. Not ones that HOPE to travel.So people who “didn’t even go there for 5 years” shouldn’t have purchased in the first place.
    I am looking to by in, but i do realize the value. Mind you, there are some crappy companies/properties out there but there are reputable properties as well.
    Dave says take that $13,000 and put it into a 12% mutual fund….WHERE IS THAT??? Mine are getting around 5%, if I am lucky.
    So you let that money sit in the mutual fund for 10 years at 12% and it grows to 43,000. (remember, you will be spending money every year while vacationing in addition to putting your 13,000 aside)
    So what he is saying is “don’t vacation for 40 years and that money will swell to over a million dollars.
    Hmmmm….i know I won’t be alive in 40 years, much less probably not wanting to do much travel when I am 90 years old……

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