Maintenance fee payment options

[k9disney]

Hi everyone,

I have a question re: lump sum payment of fees vs. monthly payment of fees.

Is there a difference in total (i.e. interest added) when using the monthly option or does the total remain the same as the lump sum? TIA.

k9

 

[DebbieB]

There is not a fee to split it out into monthly payments. They only do it direct debit from a bank account. You have the choice of the 1st or 15th of the month.

 

[KNWVIKING]

The big advantage to direct debit- besides convenience- is that in Jan rather then sending a lump sum,keep that money in an interest bearing account and just make monthly payments.No fees,no agrued interest. Why give Disney your money any sooner then you need to.

 

[k9disney]

Excellent - thanks for your help. I believe I'll be doing the monthly payments, thank you very much. I'm sure I can make better use of the interest on the money than Disney can!


Thanks again!

 

[Caskbill]

The other option is you can make the January full payment by credit card. If you use a card that has some type of rewards associated with it (EG airline miles, etc), that may be worth more to you than any accrued interest you might get leaving the money in the bank.

Our GM card gives 5% toward our next car purchase. Our bank on simple savings account is paying less than 3% APR of which I would actually only receive a fraction since the entire dues amount is not there for the whole year, being paid out every month in direct debits. (1/12th only gets 1 months interest, 1/12th gets 2 months interest, 1/12th gets 3 months interest.....etc.)


If your dues are $1200, and you had it in an interest account paying 3%, you would receive a total of $16.50 interest over the year.

By charging on my GM card, I get $60 off my next purchase of a new car.

For someone else, getting FF miles for example, it would be simple to compare the value of the miles vs. $16.50

For me, to break even, I would have to get 10.9% interest somewhere to match the 5% I get using the GM card.

<i>Note: your results may vary.....</i>

If you really want to get into this, you can also pay by credit card, and use a home equity loan to pay off the credit card charge, then pay the home equity loan monthly through a direct debit.

Currently our home equity loan is 4.75%. We can simply write a check for anything and it automatically goes onto the loan. The loan is automatically paid thru debits monthly, just as if Disney debited the account. The advantage is that we get $60 credit toward a GM purchase, and only pay $18 in interest for the year, a net gain of $42., and I never used any of my own up front money. (Basically I 'purchased' $60 of car rebates for $18. Actually a little less since the $18 is tax deductible)

Of course this works only if you pay your credit card bills in full each month.

 

[ncligs]

Caskbill is right. We pay by credit card in full in Jan. We get FF miles on Continental. We also have a GM card and max out ($500 yr) . You have to pay in full( every month) to take advantage of the credit card perks. We usually get 2-4 round trip plane tx free every year . We are also buying a new car this November and we will have $3000 earned on our GM credit card to put down on it. So as you can see we take advantage of credit card perks and we charge everything........but pay in full at the end of the month

 

[jcodespoti]

I agree w/the above statements. We put everything ont the Delta Amex card. though DVC does not take it for dues paymnts, we really rack up the double miles where we can. You might want to find a "perk" card that works best for you. again the only work if you pay them off at the end of the month.



Joe in CT