Downfalls to.......

[Laurabearz]

Downfalls to being in a constant state of Borrowing.....

I am new to this whole wonderful world of DVC and so far have found ourselves in a state of borrowing.... A December use year doesnt help!! LOL

What should we be concerned with...... any downfalls I am missing?? We have borrowed all our 2002 points....... and if the trend continues ( gotta borrow again for next years trips) will we find ourselves in trouble? Should we restrain ourselves from vacationing next year to get "with the program" ?

Thanks for your insights!!!

 

[larry_poppins]

I don't know if this helps any but, I have already used all of my 2002 points and a few of my 2003! My use year is October so I have not even received my 2002 yet!

Oh well, perhaps one year I will be all caught up with my borrowing!

Larry

 

[DebbieB]

The only real downfall to borrowing so much is if you change your mind on a trip or have to cancel a trip, those points have to be used by the end of the use year you borrowed them into, they can't be banked. If you would change your mind on a trip reserved with current year points, you could bank them (depending on the deadlines) and use them next year.

 

[Beth]

DebbieB's exactly right.

We've pretty much been borrowing since we first bought in - the problem with living so close, "I <i>know</i> we were going to save points.. but I've had a really rough week at work - can't we PLEASE run over and stay this Saturday night, just to 'get away'?!?"

The problem we've had is that our vacations have changed a bit since we first bought, and we tend now to vacation in September. Our use year is October. With borrowing for a September stay - we better be VERY careful that we won't need to cancel that trip last minute - or we'll risk losing those points!!

 

[dianeschlicht]

WE are in a constant state of banking instead of borrowing. I think perhaps the magical beginings program is responsible for the borrowing thing. People who used magical beginings started out with a defecit.

 

[KCritter]

We're in a constant state of borrowing, too. I figure this way, we never have to worry about our banking window!

 

[Fenceman]

I think diane may be right about the MB and starting out borrowing. Our first contract we bought in Feb and received a Oct use year and did not use the MB. Our first trip on points was after Oct. so we had double the points. We were in a state of banking until this year when we settled for a 1-bedroom instead of a 2 like we wanted. Instead of borrowing for next trip we added on so we will have enough points in the near future for our 2-bedroom.

If we would have done the MB we to would have been borrowing to go on the trips that we took and had a hard time catching up without skipping a year.

We do live in a "borrowing" society.

 

[Synonymous]

We've been borrowing all along, too. The only problem I see is the loss of flexibility. As mentioned above, once you've borrowed the points you're committed to use them in the "borrowing year." Also, it limits the trip you can take.

For example, I have borrowed all of my 2002 points already. I'm still planning a trip in January, 2002 (my use year is June), but that will be using borrowed 2003 points. So, I'm limited to my annual allotment of points. If I wanted to stay longer, or maybe take the cruise in January, I wouldn't be able to, because I can't get to those 2004 points yet (a good thing, I suppose.) If I was using 2002 points, I could dip into 2003 for an extra night or something.

At some point, I suppose, I'll have to pay the piper and skip a year. I'm thinking 2041.

I don't blame Magical Beginnings- I blame over-excitement our first year. We couldn't wait to try all these great places, so we traveled more than we normally would.

 

[CaptainMidnight]

Another way to look at it is your borrowing money a year ahead finance free. If you borrowed the money for your vacation accomodations and couldn't pay it off for a full year, you'd have to pay finance charges on those funds. When borrowing ahead by points, there are no finance charges.

Yes, rationalization is a dangerous thing.....

 

[Granny]

If you keep yourself in a constant state of borrowing for 40 years, you don't have to worry about that mad scramble for ressies in 2041/2042.

 

[MikeJ]

We only joined two years ago when we bought an OKW resale and were in a deficit situation after our first trip home. Our solution to the dilemma was to buy a second contract.

- Mike

 

[Laurabearz]

Originally posted by MikeJ
We only joined two years ago when we bought an OKW resale and were in a deficit situation after our first trip home. Our solution to the dilemma was to buy a second contract.

Hee hee.... we are in the market for our THIRD contract.... but some how I dont think that will help our borrowing....

Maybe once the novelty of DVC wears off (yeah right Like that will happen!) we will catch up!

Thanks everyone for your responses.... Our guide suggested for the trips close to the end of our UY, where we could loose the points, we should get travel insurance..... I thought that was a good idea.... We normally dont cancel trips.... and we had never bought TI before.... but then again we never had any precious points to care for!! LOL

Your thoughts????

 

[SleepyatDVC]

I'm with Granny!! You'll be ahead of the game in 2041/2042. Can you IMAGINE the mad rush to get ressies toward the end especially with all the people with BANKED points!!!