financing

[dalt01]

you two kind of hijacked this thread

 

[Y-ASK]

you two kind of hijacked this thread

Sorry, guess I was just a little too grumpy today....

 

[WilsonFlyer]

I'll throw something out there that I bet some others of you would like to say...

While, as a BANKER; I certainly understand what people mean when they say you shouldn't finance DVC or you shouldn't use your 401k to finance DVC or you shouldn't generally go in debt to buy into DVC. Technically, they are all right... BUT.. and this is a BIG but...

I, for one, would have never had a damn thing had I not begged, pleaded, borrowed, cried, struggled and everything else to get what I have today and I've done pretty good by most standards.

I've had tough times making payments and I'll have them again, probably, BUT I'll do whatever it takes (legally, of course) to give me and my family the things I want us to have. Period. NO exceptions and NO excuses. If I feel DVC's important enough to go into hock, that's MY business and MY decision.

Yes. That paragraph goes against virtually everything that promotes a healthy financial status. I DO know that but as human beings, we are emotional creatures with desires and wants and sometimes even needs that exceed our CURRENT ability to obtain. People have creative ways to get what they want. Don't criticize those of us that stretch to the limit as long as we do the right thing and pay our bills. It's really nobody else's business.

Some of you folks need to get off your high horses about if you can't pay for it in cash, you shouldn't buy. If I had the cash available that YOU have, I would pay for it outright but it's not your place to tell someone they shouldn't have it just because they had to buy it on credit. Credit makes the world go 'round.

Whew... I've been wanting to get that off my chest for about 10 threads like this now. I'm glad I finally did.

 

[Inkmahm]

i suspect you don't understand what the word "frivolous" even means, so i'll help you out. it means "of little weight or importance."

retirement savings OTOH is more of an essential. owning a timeshare is not...it is "of little weight or importance." that does not mean something bad as you mistakenly imply, but it does mean that you should only spend money on "frivolous" things once you first take care of necessary expenses and savings (such as retirement savings).

the market only averages 8-10% over time by offsetting huge declines (like the one we're in now) with larger gains. it's a bad idea to risk missing one of those larger gains by paying yourself a small amount of interest for something like a timeshare that is a nonessential. in general, you shouldn't mess with your retirement funds in a case like this simply because you're impatient and want instant gratification.

Excellent advice. (CPA here)

 

[marynvince]

My Vote, because Vinny has been hit with some pretty hard times due to this whole financial crisis we are in right now. Maybe if you default, Vinny can get some of the $700 Billion to help fund his golden parachute.

I enjoy the refreshing intelligence that I occasionally find here

 

[CarolAnnC]

My first DVC purchase was through Disney in 1997. We had taken the tour early on and planned for our much desired purchase. We bought 270 OKW points. I went back to work full time to manage this financially and we took a 401K loan to help with the down payment. It was paid back in just two years and it enabled my beloved DH to enjoy DVC vacations from 1997 until his untimely and unexpected death in 2000 while our girls were still young teens.

The memories and happiness this brought to me and my girls is absolutely priceless. Not to mention to comfort it brings to know DH was able to enjoy himself at his most desired vacation spot prior to his death.

We cannot always measure things using dollars and sometimes what is perceived to be the most financially sound decision, can end up being the absolute worst. I have never regretted our decision to purchase DVC the way we did.

Just an added note here to please try to keep on topic and remain civil and respectful on this thread in order that the discussion may continue. Thank you everyone...

 

[cruiseletters]

We have financed through disney several times and have paid it off early. Your only talking about 5,000.00.

 

[thelionqueen]

I'll throw something out there that I bet some others of you would like to say...

While, as a BANKER; I certainly understand what people mean when they say you shouldn't finance DVC or you shouldn't use your 401k to finance DVC or you shouldn't generally go in debt to buy into DVC. Technically, they are all right... BUT.. and this is a BIG but...

I, for one, would have never had a damn thing had I not begged, pleaded, borrowed, cried, struggled and everything else to get what I have today and I've done pretty good by most standards.

I've had tough times making payments and I'll have them again, probably, BUT I'll do whatever it takes (legally, of course) to give me and my family the things I want us to have. Period. NO exceptions and NO excuses. If I feel DVC's important enough to go into hock, that's MY business and MY decision.

Yes. That paragraph goes against virtually everything that promotes a healthy financial status. I DO know that but as human beings, we are emotional creatures with desires and wants and sometimes even needs that exceed our CURRENT ability to obtain. People have creative ways to get what they want. Don't criticize those of us that stretch to the limit as long as we do the right thing and pay our bills. It's really nobody else's business.

Some of you folks need to get off your high horses about if you can't pay for it in cash, you shouldn't buy. If I had the cash available that YOU have, I would pay for it outright but it's not your place to tell someone they shouldn't have it just because they had to buy it on credit. Credit makes the world go 'round.

Whew... I've been wanting to get that off my chest for about 10 threads like this now. I'm glad I finally did.

Very well stated! I too get sick and tired of those posting "if you can't pay for it in cash you shouldn't buy it".

It would be fabulous if we could pay for it in cash, and had our house paid off, and all of our kids got scholarships, but it just isn't our situation.

I was a SAHM for 10 years to raise my children, which is the best decision I EVER made; they truly are well behaved and well adjusted young men. Our finances were unstable and our credit suffered somewhat in making it possible for me to stay home.

Now that I am back to work full-time, our budget completely and totally can handle this payment, and the benefit far outweighs the interest. But that is our situation; everyone has one.

Everyone has the right to do what is best for them period!

Thanks for getting that off your chest Wilson, I totally agree!

 

[forevercruising]

I'll throw something out there that I bet some others of you would like to say...

While, as a BANKER; I certainly understand what people mean when they say you shouldn't finance DVC or you shouldn't use your 401k to finance DVC or you shouldn't generally go in debt to buy into DVC. Technically, they are all right... BUT.. and this is a BIG but...

I, for one, would have never had a damn thing had I not begged, pleaded, borrowed, cried, struggled and everything else to get what I have today and I've done pretty good by most standards.

I've had tough times making payments and I'll have them again, probably, BUT I'll do whatever it takes (legally, of course) to give me and my family the things I want us to have. Period. NO exceptions and NO excuses. If I feel DVC's important enough to go into hock, that's MY business and MY decision.

Yes. That paragraph goes against virtually everything that promotes a healthy financial status. I DO know that but as human beings, we are emotional creatures with desires and wants and sometimes even needs that exceed our CURRENT ability to obtain. People have creative ways to get what they want. Don't criticize those of us that stretch to the limit as long as we do the right thing and pay our bills. It's really nobody else's business.

Some of you folks need to get off your high horses about if you can't pay for it in cash, you shouldn't buy. If I had the cash available that YOU have, I would pay for it outright but it's not your place to tell someone they shouldn't have it just because they had to buy it on credit. Credit makes the world go 'round.

Whew... I've been wanting to get that off my chest for about 10 threads like this now. I'm glad I finally did.

BRAVO!!! BRAVO!!! BRAVO!!!

Thanks, WilsonFlyer, for giving me a post I actually enjoyed reading so much the first time that I re-read it a second time, out loud, to my DH!

Your comments are a breath of fresh air!

 

[cccory]

BRAVO!!! BRAVO!!! BRAVO!!!

Thanks, WilsonFlyer, for giving me a post I actually enjoyed reading so much the first time that I re-read it a second time, out loud, to my DH!

Your comments are a breath of fresh air!

Disney is charging 10.75% for good credit and 14.25% for standard credit, that's for 10 years, no penalty if you pay it off early. We are using our Home Equity line of credit at a rate of 5.49%, same thing, no penalty if you pay it off early. We plan on paying it off in 1-2 years, so I was just going to go through Disney, but decided to check the other way, and why not save anywhere you can?

 

[Liljam]

I'll throw something out there that I bet some others of you would like to say...

While, as a BANKER; I certainly understand what people mean when they say you shouldn't finance DVC or you shouldn't use your 401k to finance DVC or you shouldn't generally go in debt to buy into DVC. Technically, they are all right... BUT.. and this is a BIG but...

I, for one, would have never had a damn thing had I not begged, pleaded, borrowed, cried, struggled and everything else to get what I have today and I've done pretty good by most standards.

I've had tough times making payments and I'll have them again, probably, BUT I'll do whatever it takes (legally, of course) to give me and my family the things I want us to have. Period. NO exceptions and NO excuses. If I feel DVC's important enough to go into hock, that's MY business and MY decision.

Yes. That paragraph goes against virtually everything that promotes a healthy financial status. I DO know that but as human beings, we are emotional creatures with desires and wants and sometimes even needs that exceed our CURRENT ability to obtain. People have creative ways to get what they want. Don't criticize those of us that stretch to the limit as long as we do the right thing and pay our bills. It's really nobody else's business.

Some of you folks need to get off your high horses about if you can't pay for it in cash, you shouldn't buy. If I had the cash available that YOU have, I would pay for it outright but it's not your place to tell someone they shouldn't have it just because they had to buy it on credit. Credit makes the world go 'round.

Whew... I've been wanting to get that off my chest for about 10 threads like this now. I'm glad I finally did.

Thank you, thank you, thank you!
I dislike high horses, always have, always will and one of the things I have always tried to avoid on this board and others were threads that made me feel like I was less of a person for financing my DVC purchase because I wanted something but didn't have enough cash on hand to buy outright. Frankly, I really don't care anymore what people think, but I sure do appreciate that you've finally taken the time to post this here!

Anyway, back to the topic at hand about $5000 and how to go about paying for the DVC purchase - I say go ahead and go with Disney finance and pay for it in 5 or 10 years or however you wish if that is what seems easiest for you financially. I would personally go with 5 years on $5000 and pay it off early, but only you know what you can afford. Good luck with what ever you decide and remember that no matter what that decision is, it has to be one that is right for you and your family.

 

[thelionqueen]

Disney is charging 10.75% for good credit and 14.25% for standard credit, that's for 10 years, no penalty if you pay it off early. We are using our Home Equity line of credit at a rate of 5.49%, same thing, no penalty if you pay it off early. We plan on paying it off in 1-2 years, so I was just going to go through Disney, but decided to check the other way, and why not save anywhere you can?

I'm all about saving wherever I can, but you are taking a HELOC out on your home, which can make the payment spread out for 30 years, AND greatly depends on your home appreciating instead of depreciating. I'm not a big fan of adding anything on to my mortgage, even at a lower rate, than my home. But that's just me, to each their own.

It just doesn't seem like a big deal to me what the interest rate is, as we will pay it off within 3 years. And, in the worst case scenario, if we DON'T pay it off in 10 years, for whatever reason, the payment is still something we can easily afford. It's just how we can manage to purchase DVC which is INCREDIBLY important to me in my life and the lives of my family.

 

[cccory]

I'm all about saving wherever I can, but you are taking a HELOC out on your home, which can make the payment spread out for 30 years, AND greatly depends on your home appreciating instead of depreciating. I'm not a big fan of adding anything on to my mortgage, even at a lower rate, than my home. But that's just me, to each their own.

It just doesn't seem like a big deal to me what the interest rate is, as we will pay it off within 3 years. And, in the worst case scenario, if we DON'T pay it off in 10 years, for whatever reason, the payment is still something we can easily afford. It's just how we can manage to purchase DVC which is INCREDIBLY important to me in my life and the lives of my family.

Not for everyone, that's just want we did. It is a totally separate line of credit, separate payment from mortgage, and you don't have to have it for 30 years. We are paying it off in 1-2 years. I rather pay 5.49%, than 10.75%, but that's just me.

 

[thelionqueen]

Not for everyone, that's just want we did. It is a totally separate line of credit, separate payment from mortgage, and you don't have to have it for 30 years. We are paying it off in 1-2 years. I rather pay 5.49%, than 10.75%, but that's just me.

Like I said, to each their own. However, a HELOC is a loan that is tied to your home. I understand it is a separate loan, but the rate and terms are such because it is tied to the equity in your home. That rate is fantastic, no doubt and I'm glad it works for you!

 

[Canadian Tom]

Hello: Given the current state of the economy, do you really think that this is the best time for you to be increasing your debt load for a discrestionary purchase? Why not save the money first, then pay cash for the purchase. My economic/accounting background really kicks in when someone asks this type of question. It's just not the cost of the loan you need to consider but the yearly maint. fees also. Just an opinion. Thanks

 

[WilsonFlyer]

Hello: Given the current state of the economy, do you really think that this is the best time for you to be increasing your debt load for a discrestionary purchase? Why not save the money first, then pay cash for the purchase. My economic/accounting background really kicks in when someone asks this type of question. It's just not the cost of the loan you need to consider but the yearly maint. fees also. Just an opinion. Thanks

If I was the CEO of Wachovia or WaMu... oh wait... never mind.

Everything of real MONETARY value that I have ever accumulated in my life, I've pretty much aquired via going into debt first. This is not untreaded water for some of us.

State of the economy? My business is as good as it's ever been (knock on wood). Mass panic ensues because the mass media tells the masses to do so. I march to a different drum. Always have. "Look what the masses do and do the opposite." has always been my mantra.

I understand your logic but sometimes logic goes straight out the window when human emotions come into play. Sometime it doesn't matter in the long run that they did.

To each his own.

 

[Flyerfan]

If I was the CEO of Wachovia or WaMu... oh wait... never mind.

Everything of real MONETARY value that I have ever accumulated in my life, I've pretty much aquired via going into debt first. This is not untreaded water for some of us.

State of the economy? My business is as good as it's ever been (knock on wood). Mass panic ensues because the mass media tells the masses to do so. I march to a different drum. Always have. "Look what the masses do and do the opposite." has always been my mantra.

I understand your logic but sometimes logic goes straight out the window when human emotions come into play. Sometime it doesn't matter in the long run that they did.

To each his own.

AMEN!!
If I didn't finance, I wouldn't have a car to drive or a house to live in or a Happy Place to go every year or......

 

[wroth3]

If you can afford to pay the $5000 back in one year, we recently (August) got 4.95% financing from DVC

 

[JonS99]

Hello: Given the current state of the economy, do you really think that this is the best time for you to be increasing your debt load for a discrestionary purchase? Why not save the money first, then pay cash for the purchase. My economic/accounting background really kicks in when someone asks this type of question. It's just not the cost of the loan you need to consider but the yearly maint. fees also. Just an opinion. Thanks

As well as the increased cost in 2 or 3 years when a person buys, not to mention the cost of any Disney vacations during those years...

 

[leelee9878]

I just wanted to give everyone a heads up if they are considering using their HELOC- I just recently purchased a DVC at AKV and I had every intention on using my line of credit to pay for it being as Disney's rate was more then half my rate on my line of credit.

I got home on Sunday, I wrote the check Monday, got home from work on Tuesday and received a letter in the mail from Countrywide stating that draws on my line of credit have been suspended due to the economic crisis and depreciation in home value. I called them immediately and they told me that they think my condo depreciated more then $20K which I honestly do not believe, even in this market. They told me in order to get the suspension listed I need to get my condo appraised or get a Comparative Market Analysis (current listings, recent sales) from a realtor, and send them the documents. I am extremely thankful that I did not send the check yet, so I can figure all of this out!

Just wanted everyone to know to contact their lender before deciding on using their HELOC.