DVC Dilemma for us

[3DisneyNUTS]

Well (I have explained this before but I think credit purchase is ok in some situations here's why.

We put our DVC on our amex for the rewards points then transferred it to a discovercard that gave us 0% for life of the balance transfer. We paid it off but at NO INTEREST at all plus got 2 weeks free rental car from the points we accumulated through amex.

Now we are in position to pay cash but why not use someone elses money and 'get paid' to do it.

It sounds like with your financial situation you have excellent credit so you must have amazing offers that you qualify for.

So find a great credit card and with some creative transferring you can carry the balance while paying it off with no interest and still get perks.

This way your vacation will be paid for with points and you will not have to dip into your savings for DVC.

 

[jodifla]

Bongo and I will be likely grabing up your points on the reslae market soon enough. I am truly sorry you didn't take his advice. Lets just hope the instant gratification you've chosen doesn't put a big dent in your long term financial health.

Happy travels and heres to crossing our fingers for your retirement. At least you'll have the DVC right............. well maybe not.


Welcome home,

Eugene

Wow, what a thing to say! And talk about having no basis in reality. We financed...it's all paid off, no problem.

What the HECK are you talking about? Lots of people finance purchases with no problem.

 

[shantay1008]

Sorry, I cannot agree with this mentality. DVC is a luxury (no matter how much fun we get out of it!)

Oh, come on, guys! I was being tongue-in-cheek. Sort of. Obviously, DVC is a huge luxury, and even if you manage to be able to afford the cost of DVC itself, you have to cough up large amounts for airfare, tickets, food, etc.

But there is something special about this place, and I was willing to take on debt for a little while because I wanted my parents and kids to enjoy WDW together, and, frankly, none of them are getting any younger.

So, yes: DVC=Luxury Item. But it is unique, and therefore, for some of us, the typical financial rules and restrictions don't apply.

BTW: Why do people even ask for financial advice on here? They always get read the riot act by someone or other.

 

[Muushka]

Oh, come on, guys! I was being tongue-in-cheek. Sort of. Obviously, DVC is a huge luxury, and even if you manage to be able to afford the cost of DVC itself, you have to cough up large amounts for airfare, tickets, food, etc.

But there is something special about this place, and I was willing to take on debt for a little while because I wanted my parents and kids to enjoy WDW together, and, frankly, none of them are getting any younger.

So, yes: DVC=Luxury Item. But it is unique, and therefore, for some of us, the typical financial rules and restrictions don't apply.

BTW: Why do people even ask for financial advice on here? They always get read the riot act by someone or other.

 

[bongo59]

2Princes2Princesses congrats and a soon to be welcome home........As I have found there are many different views, some help some are out there. Apparently the ones that feed off the people in financial ruin sound like bankruptcy Lawyers to me......I could be wrong. There really is nothing wrong with financing......Thesilentstorm and bongo did you pay cash for your cars...no financing.......this is a luxery item, you could always use a bicycle. Again congrats and enjoy...DVC is a great.....see you at Disney.....

Brownie

yes i have no CC debt and own every car............and have paid cash for every DVC point i own. And no I am not a Bankruptcy Lawyer. And if you knew about the new bankruptcy laws recently put into effect they no longer protect the individual but only protect the company..................that further sharpens my point why one should never finance any luxury purpose. I just bought a 1200 point contract several weeks ago from a person who most here would consider wealthy. This person makes over 7 figures a yr but has a debt service that even that salary cant pay for. I just bought his 2006 SL65, his DVC, and his/her rolex watches, and his house for about 40 cents on the dollar to get him out of an IRS/foreclosure seizure. Most Americans live with credit as the "normal" of OK way of doing things....................I dont and i would never give anyone that type of advice no matter how well equiped they believe they could handle even a small sum of debt..............it sets a precendent that i think even the OP said could make it easy to fall prey to if done even the first time................Am I a heretic for my beliefs????? I leave that for you to judge.................but I know there is no chance of me telling anyone debt for a luxury makes any sense regardless of circumstance.

 

[tomandrobin]

I just bought a 1200 point contract several weeks ago from a person who most here would consider wealthy. This person makes over 7 figures a yr but has a debt service that even that salary cant pay for. I just bought his 2006 SL65, his DVC, and his/her rolex watches, and his house for about 40 cents on the dollar to get him out of an IRS/foreclosure seizure. QUOTE]

Wow, good luck getting that 1200 point contract thru Disney at 40 cents on the dollar. But what a great deal for you! Have fun with all of those points, I would!

 

[tomandrobin]

Well (I have explained this before but I think credit purchase is ok in some situations here's why.

We put our DVC on our amex for the rewards points then transferred it to a discovercard that gave us 0% for life of the balance transfer. We paid it off but at NO INTEREST at all plus got 2 weeks free rental car from the points we accumulated through amex.

We used our AMEX Starwood Rewards card the same way. We always pay off the balance, yet get all those points which lead us to more free trips!

 

[browniemtb]

bongo, trust me, I do understand what you are trying to say. All I am saying is that all debt is not bad, too much debt is. Financing a luxery item for 1 year should not be a huge error in a persons financial well being. The person you explained above seems to me they just got in way over there heads....that can happen. But the op that started this thread seems like a very conservative planner and would not over extend to buy into Disney. Unfortunately with out debt people could not buy those large dollar purchases.......so before most people sign on the dotted line I believe they have thought out all the ramifications the debt will cause. Your feelings are just and I commend you on sharing them ......it will make some non owners think before they jump in with two feet and forget about other commitments. Others, as you can agree, can manage their debt properly.
Brownie

 

[shantay1008]

I just bought a 1200 point contract several weeks ago from a person who most here would consider wealthy. This person makes over 7 figures a yr but has a debt service that even that salary cant pay for. I just bought his 2006 SL65, his DVC, and his/her rolex watches, and his house for about 40 cents on the dollar to get him out of an IRS/foreclosure seizure. QUOTE]

Wow, good luck getting that 1200 point contract thru Disney at 40 cents on the dollar. But what a great deal for you! Have fun with all of those points, I would!

tomandrobin, Bongo was talking about the person's house, not DVC.

Before anyone starts attacking Bongo, keep in mind that he never said anything rude or made personal attacks...he just likes to remind people not to go into debt. Which sounds like my mother, actually.

It's hard to argue with him, if you consider that our nation doesn't save anymore (we've been negative for, what, 11 months now?), not to mention that more people declare bankruptcy than graduate from college nowadays.

At least we know Bongo is there to buy our DVC contracts if worse comes to worst...heaven forbid!

 

[browniemtb]

tomandrobin, Bongo was talking about the person's house, not DVC.

"I just bought his 2006 SL65, his DVC, and his/her rolex watches, and his house for about 40 cents on the dollar"

Yes bongo did buy his DVC.........

 

[shantay1008]

"I just bought his 2006 SL65, his DVC, and his/her rolex watches, and his house for about 40 cents on the dollar"

Yes bongo did buy his DVC.........

I'm sorry...I read it as just the house being 40 cents on the dollar. So, how would you get that past Disney ROFR?

 

[browniemtb]

I'm sorry...I read it as just the house being 40 cents on the dollar. So, how would you get that past Disney ROFR?

Disney would never let it happen. That would be about $35 a point I believe.....what a deal if he can pull it off, but highly doubtful.
Brownie

 

[bongo59]

I just bought a 1200 point contract several weeks ago from a person who most here would consider wealthy. This person makes over 7 figures a yr but has a debt service that even that salary cant pay for. I just bought his 2006 SL65, his DVC, and his/her rolex watches, and his house for about 40 cents on the dollar to get him out of an IRS/foreclosure seizure. QUOTE]

Wow, good luck getting that 1200 point contract thru Disney at 40 cents on the dollar. But what a great deal for you! Have fun with all of those points, I would!

i'll work it out for you...........SL65 is 185K new.......the house was 1.4 mil............I bought the car with 1890 miles on it for 65K in cash and the house for 850K............I sold the car in one day for 125K to our local Benz dealer and I sold the house at absolute auction in 2 weeks for 1.06 mil................the profit on both transactions paid for the 1200 points at 92 dollars a share via disney..............they passed on the contract and we got it.............for free. That is how it occured.

 

[browniemtb]

i'll work it out for you...........SL65 is 185K new.......the house was 1.4 mil............I bought the car with 1890 miles on it for 65K in cash and the house for 850K............I sold the car in one day for 125K to our local Benz dealer and I sold the house at absolute auction in 2 weeks for 1.06 mil................the profit on both transactions paid for the 1200 points at 92 dollars a share via disney..............they passed on the contract and we got it.............for free. That is how it occured.

Thats awesome.......is this the line of work or is this a hobby for you?? And how do you find these people in distress??
Brownie

 

[bongo59]

I have my own business but i am also what some call a angel............more of a Venture Capital angel...............if someone needs to save their equity on any asset quickly i can liquidate their assets for cash in less than 3 hours..............I make more as an angel now than i have in my own business...................This is part of the reason I tell everyone i meet that you should avoid all debt.............I am the last guy you should want to see but for debtors I am the only one that can help get them out of some of the saddest and deepest holes they made...................Do I know what I have said on here is controversial..............sure............but if i have made just one person think about this then I am happy i brought it up...............Debt for a luxury is always bad..................and no reason is justification for it.

 

[zalansky]

Bongo,
You definintely make excellent points. I wish I were in your financial shoes! We financed the DVC in February but it will be paid off by the end of this year. Are you a financial advisor as well?

 

[bongo59]

financial advisor? no.............but i do teach my kids and familiy and close friends my views........and i have shared them here with you all too i guess..................I just hate to see people make the wrong mistakes with relation to money...............America is built up credit and it is the reason why we have most of the social and economic disparity in our own country..............people dont understand how to use it and control their own needs and wants.............when cash is not in the bank to cover it......................avoid debt margin and save first............then wonderful things can happen to your family. Trust me...............it works 100% of the time.

 

[rinkwide]

...i am also what some call a angel...

What do the rest of the people call you?

 

[tomandrobin]

I guess I read the thred the wrong way, but I did assume that the purchase of the DVC contract would have been structured to pass Disney. Take a little here, add a little there ....end result being the same.

Bongo you make a lot of excellent points about finances. Today's kids/society in general is all about the "me" and "now". Even if to fullfill those needs the put themselves and family in financial distress.....i don't get why they woud do that.

 

[jodifla]

Frankly, I think Bongo makes sweeping generalizations. His faulty reasoning doesn't apply to me.