Agonizing over "final" decision to Cancel...opinions sought

[Fargoman2]

Without getting into an exhaustive story about some of the financial challenges we unexpectedly encountered (like losing our finished basement to the flood in 2009--which serves as my DW's daycare business location), we had made the painful decision to CANCEL DVC by letting it bleed back to Disney (approx. 18 months into our contract).

Since making that decision, we have recovered reasonably well and we do have some resources available to continue our membership. But it will still be "tight."

We are literally on the fence with our decision. We have already invested so much in DVC--financially and emotionally--without getting our first real payoff vacation (scheduled for Aug. 2010). It seems like a real waste to literally throw all of that investment away.

At the same time, it would greatly ease our financial burden to "just walk away." And we have reached that conclusion several times. But as soon as we do, we get very depressed about it.

We understand this is a "luxury" and not a "need"--so please understand we expect and deserve no sympathy. It's just that Disney has been such a huge part of our family identity (9 trips in 9 years) and we dream of carrying on the legacy for many years to come.

Well, enough of my boring story. Feel free to chime in with any thoughts you might have. In any event, thanks for letting me share my conundrum. BTW-- our "drop dead" decision day is April 28.

Happy Monday!

 

[loveysbydesign]

I don't own DVC but have friend's who do. You could take budget minded future trips until you come to the point that you can re-buy. I hope things get better for you and your family!

 

[LouisianaDisneyFan]

Have you tried renting out your points to help defray costs for a while until you can be less emotional about the decision? Rent would not cover all of your payments (mortgage AND maintenance fees), but it would definitely cover a chunk of that and would prevent you from taking a hit on your credit rating for turning it back in to Disney.

 

[ImagineerM]

I'm so sorry to hear about your situation!

I think you have to do the best thing for your family, especially during rough times. But just because you sell back now, doesn't mean you are out for good -- you can always jump back in later.

Have you considered renting your points for a few years to pay your MF? That could be an option.

Best wishes! I'll be praying for you!

Cheers,
Josh

 

[gray52]

There are a ton of factors for you to consider... way too many to take financial advise from posts on the dis-boards. My best advice is to sit down with a financial person. Let him/her dissect your income/expenses and let someone who knows the details for your specific situation help you make the decision. When it comes to what's best for your families future well-being, don't let emotion interfere with financial responsibility.

 

[LouisianaDisneyFan]

There are a ton of factors for you to consider... way too many to take financial advise from posts on the dis-boards. My best advice is to sit down with a financial person. Let him/her dissect your income/expenses and let someone who knows the details for your specific situation help you make the decision. When it comes to what's best for your families future well-being, don't let emotion interfere with financial responsibility.

I agree that talking with a financial adviser is a must in this situation... but I also think asking for advice on the boards is not a bad idea either. It's probable that a financial adviser would be unfamiliar with options open to DVCers for renting points, or perhaps any programs offered by Disney, for owners experiencing hardship. DVCers on the board, however, can help alert owners to those options, which can then be passed on to the financial adviser in the decision-making process. Following both strategies can be very helpful in this situation.

 

[DeeCee735]

So sorry to hear about your hardships, and the flood!

We've been owners since 2000, and we've gone through some tough financial issues over the last 2 years as well (twins in college for one!)

We've downgraded other expenses (less expensive cars, lowering that monthly bill, watching...really watching heat and electric, not eating out as much (or bringing in take out), paying off a debt quickly and removing that monthly bill, etc) and that helped enough during those tougher times.
We didn't finance DVC, but the MF's and trips can be costly, so by making some minor adjustments in other areas we are able to take the trips we want and pay the MF's and park tickets, etc with much more "breathing room".

Take a good look at the monthly budget and see if there's anyway you can squeeze from something else.

Above suggestions are better, but I'm just dropping in with my 2 cents.

Very best of luck to you and yours,

 

[Fargoman2]

Have you tried renting out your points to help defray costs for a while until you can be less emotional about the decision? Rent would not cover all of your payments (mortgage AND maintenance fees), but it would definitely cover a chunk of that and would prevent you from taking a hit on your credit rating for turning it back in to Disney.

Rent--interesting idea; thanks for that.
I have been assured by Disney that they do not report this to credit bureaus; I would be looking only at a fairly significant tax hit for "forgiveness of debt"

 

[edk35]

I remember your first post about your situtation. I am so sorry. Well it sounds like you are in a better position now compared to then. Congrats. You obviously have been working hard. Now...it looks like you bought into DVC and yet must have banked points if you are just now going in Aug. Is this correct?? Also, did you actually contact DVC and tell them you could not afford the contract you have been paying on for 2 years? Have you been making the monthly payments? I am assuming you are financing with them?? If it were paid off I would think you wouldn't be here asking for advice. Anyway.... can you afford to take that trip in Aug.? Sure your accomodations are covered but what about other expenses? Can you swing that? Also, if you are behind in payments to DVC I am pretty sure they would have cancelled that trip???? So maybe you can give us a few more details. If DVC is something you can salvage.....them maybe you try and rent that trip in Aug. to someone else. Bank that money and save it for a trip down the road when you are more financially stable or you take that money and pay off more of your contract or pay off MF's fees to open up more cash flow each month. I am sure you are NOT the first person to have a situation like this come about. Maybe you can cut corners MORE to help you keep DVC but maybe you just skip that trip or a couple...paying down more debt, opening up more cash flow and in another year or two GO ON THAT FIRST DVC TRIP. I guess it just depends on how much better off you are NOW compared to then. Good luck.

 

[crisi]

We understand this is a "luxury" and not a "need"--so please understand we expect and deserve no sympathy. It's just that Disney has been such a huge part of our family identity (9 trips in 9 years) and we dream of carrying on the legacy for many years to come.

Someone who had an unexpected setback like yours does deserve and should expect sympathy.

Here is the question I'd ask - you can do it but it would be "tight" - what sort of things are you giving up to retain it? Look at this as opportunity cost. Personally, there are sacrifices I make for vacations (I drive a pretty modest car) and sacrifices I wouldn't make for vacations (I wouldn't cut my grocery bill down to rice and beans, I wouldn't skimp my 401k). What sacrifices are you making and which ones are you willing to make.

Best of luck and I hope things quickly look up. My sister is up your way and has done her share of sandbagging......

 

[aggiemullins]

I agree with renting. Our points offer such a significant discount over cash reservations that there is always huge demand for renting points.

Depending on your Use Year and what your home resort is determines how much you can get for your points. If your points have more than 3-5 months on them, you can get between $10-$12 per point depending on how hard you want to work at selling them.

I've done it twice and both times, I've been amazed at how easy it really is. It gives me great comfort to know I can easily liquidate my points for any given year if I'm ever in financial straits.

 

[bumbershoot]

Since making that decision, we have recovered reasonably well and we do have some resources available to continue our membership. But it will still be "tight."


At the same time, it would greatly ease our financial burden to "just walk away."

Only you know where your budget is tight, where your burden is, etc.

Obviously you were comfortable financing 18 months ago. So I wouldn't start feeling guilty about that now. If you can let go of the guilt of financing what many feel is a luxury, then you can start looking at it more clearly, in my opinion.

Obviously this is important to you.

If you didn't have DVC, would your budget allow you to be saving for a trip there? Having DVC, does your budget allow you to save for the non-lodging expenses? We are currently paying off our car, then when done with that will start the process of smashing down the DVC debt, WHILE saving what we can for our big family trip, first WDW trip, first proper DVC trip, this December. Knock wood, our budget allows for this. Can you guys truly save for the other expenses of your trip at this time?

If not, but if you can afford the dues and monthly payment, I'd rent the points, or wait until a month out and rent the reservation.

Obviously if the monthly payment and dues (either paying dues monthly or saving up for next Jan) are just too much, let it go...

But only you know where the budget is pinching. If it's pinching in the "going out to eat" budget, that's one thing. If it's pinching in the "power bill" budget, that's much different.


I'm so sorry your basement was flooded! And to have it take out part of the family's income just makes it so much worse.

 

[WDW LifeLong Fan]

Someone who had an unexpected setback like yours does deserve and should expect sympathy.................

+1

You've received sound advice from the group, best of luck.

 

[Malaguti Ball Clan]

I would try to rent the points out, things will get better and you will want your DVC. Good luck

 

[YoMickey]

PM me. I have an idea. I have some friends, actually tons of friends who go to Disney almost every year. I am the only one with DVC. We can meet up work something out where you rent us points and transfer them into my account for my friends to use. It would be all of the points and you wouldn't be burdened with people trying to rent 42 points here and there. Let me know, just trying to help you out and get my friends a better deal than what they currently pay. What is your home resort?

 

[Sandisw]

If you think that you can handle it by keeping it, and then renting out the points, it might be a wise idea to do that, at least to give you more time to decide whether or not the burden is doable.

As you said, you have already invested quite a bit into it and having to let it go and then realizing 3 months down the road that you could handle things might make you feel regretful.

There are ways to rent your points with ease (David's rental) so it might be just what you need to hold you over and stay DVC members.

Good luck!!!

 

[maburke]

I would try to rent the points out, things will get better and you will want your DVC. Good luck

OP, Check out the new sponsor of the rent/trade board. He may be able to get you a quick match to a person wanting to rent at $10/point. (Don't know when you get the $ though, maybe after the checkin.). You could also look to transfer current points to someone -- minimal hassle and immediate $. Check out the stickies on the Rent/trade board, and post again if you have questions.

Hope you find the right answer for you!

Good luck, and keep us posted.

 

[sweetdana]

If you have the 11 mth window, depending on the exp of points, a transfer should get you closer to 11 or even 12 points, and there is little risk with it. Get pay pal for the full amount up front then call on 3 way to MS it will take 15 mins.

Post to the rent board.
X points at X resort expiring X date current, banked what ever they are, all for transfer for 12$ and see what happens. Hopefully all to 1 owner and then there is no hassle.


You should be able to cover your monthly fees for a while, and if in 6-10 months you are not con-fy with your financial position then give it back.
I bet you make money not lose money on it And you will be able to go to Disney within 18 months, with your "left over points".

G L here is some dust for ya!

 

[LouisianaDisneyFan]

Actually, a transfer would give you more flexibility than renting would. If you transfer your points to another member, then they are used and the contract can still be sold if you later decide you need to do that. If you rent them, and there is an existing reservation on your membership, you cannot close on the sale until after the travel dates (or else you would have to cancel the dates, which would be incredibly unfair to the renter).

 

[dmoore22]

It was nearly a year ago, May 8th to exact, that our community was hit with the Derecho. This "inland hurricane" devastated our community. Windows blown out, furnishings destroyed, and nearly a third of our roof was blown away. We knew we were going to have a fight with the insurance company and FEMA. So what did we do? That's right. We made sure our property was secured. Managed to replace the blown out windows and tarped the roof. Then we went to WDW and OKW (our home resort) to refresh the mind and forget about the harsh realities of life. It was the best thing we did. We were revitalized and ready to deal with the challenges. We are still in the midst of cleaning up nearly a year after the fact. We still find our WDW/DVC stays to be the therapy we need in coping with the normal traumas of life.