Do I have this right about borrowing?

[Simba's Mom]

If I borrow 200 points, and we have 300 total, that leaves me with 100 next use year. What I want to make sure I understand is that although next use year I only have 100 points available, I pay dues on the entire 300 points next year. I don't have to pay dues this year based on 500 points (usual 300+the 200 I borrowed). So isn't this sort of like an interest free loan? There's no extra charge to use the points this year instead of next. Reminds me of Popeye-"I'll gladly pay you tomorrow for..[points]...today". See, I'm trying to figure all the reasons to convince DH that borrowing points isn't so bad, certainly not the dirty word he seems to think it is.

 

[PamOKW]

You are correct. You only pay dues on current Use Year points. I never thought of it that way before but it's true that you are using points on which you have not yet paid the dues. (This must be something DVC has to keep an eye on if someone is deliquent in paying dues.)

 

[timC]

So isn't this sort of like an interest free loan?

Your statement is correct... And if we apply the same analogy to banking points, banking is like savings without any interest gained.

Now. Which is would you rather have?

IMO, there seems to be a negative perception about borrowing points. Really, it's nothing more than banking in reverse. They accomplish about the same thing.

Borrowing: Have a bigger vacation this year, and a smaller one next year.

Banking: Have a smaller vacation this year, and a bigger one next year.

Any accountants in the house? Wouldn't borrowing points be better from a NPV perspective?

 

[CarolMN]

Borrowing is good! Think of it as a service to your fellow DVC members (at least to those who bank points). If there were no borrowers, there could be no bankers. If banking and borrowing get out of balance, there is no doubt in my mind that DVC would suspend that feature of the club for a time! They can do that, you know. Some years I am grateful for borrowers (because I want to bank) and some years I am grateful for bankers (because I need to borrow).


FWIW, I don't think DVC worries too much about dues for borrowed points. If you are not current on your dues, you cannot make a reservation. So if you borrow and then fail to pay the dues when it's time, you can't use your membership until you get caught up again. In your example, you could end up losing those 100 points altogether if dues aren't paid. (There may also be late charges involved for not paying on time, but I'm not totally sure about that). Also, you cannot sell a membership if the dues aren't up to date - they have to be paid at closing or the sale doesn't go through. So Disney gets the $$ in the end - don't they always??