Oh God I'm So Nervous!!!

[zdesiree]

Today I called my guide to start the process to buy 200 points and he verified the information and made a credit check at the moment to see what percentage they would give me. It turns out is 13.50%, it doesn't surprise me, because we had some problems with the credit and we've been fixing it. He told me that they will probably ask for my last tax return to verify the income and that maybe they will ask for 10% more, for a total of 20% + $1,600.00 credit they're going to give me. He even told me, that he doesn't think is going to be declined and even sent me an e-mail saying congratulations, but anyway I'm so nervous.

I'm supposed to receive the package between Wednesday and Friday, My guide told me to fill out everything and send it right back ASAP. This is really important for me, I'm doing this for my kids, I want to give them something real special, and it will be so disappointing not to be able to get it.

I need some good vibrations.

 

[mikey13v]

I'd be happy to welcome you home, and I hope that things work out for you.
You might want to consider a different approach to DVC. That interest rate may make this purchase cost prohibitive. What I would suggest, if I may, is that you make a small purchase through resale, like a 50 point contract. Then you could use your fellow DVCer's to transfer points at the going rate when you plan your vacations. When you get your credit situation where you want it, or save up money, you could purchase more points.
The only reason I say this is that you'll be paying soooo much in interest, about $200 a month for your 200 point contract. That would buy you 240 points at the going rental/transfer rate of $10 a point per year, and that's just the money you'd be paying in interest. Add in the principal payments of $80 a month, and dues of $70 a month, it may just be too much.
You're looking at paying $4200 a year for 200 points. You could spend half that to rent/transfer for now.
It's easy to see that you dream of being a DVC member, and I wouldn't suggest that you abandon that hope. You can start small and work your way up to your goal without sacrificing the benifits of membership or the amount of points you use each year.
I'm certain that most that read this will agree that 13.5% is just too much. I just wanted to give you an alternative. It'll take a lot more work to make it happen, but it might just keep you from having more credit problems in the future.
Good luck in whatever you choose to do.

 

[zdesiree]

You might want to consider a different approach to DVC. That interest rate may make this purchase cost prohibitive. What I would suggest, if I may, is that you make a small purchase through resale, like a 50 point contract. Then you could use your fellow DVCer's to transfer points at the going rate when you plan your vacations. When you get your credit situation where you want it, or save up money, you could purchase more points. The only reason I say this is that you'll be paying soooo much in interest, about $200 a month for your 200 point contract. That would buy you 240 points at the going rental/transfer rate of $10 a point per year, and that's just the money you'd be paying in interest. Add in the principal payments of $80 a month, and dues of $70 a month, it may just be too much.
You're looking at paying $4200 a year for 200 points. You could spend half that to rent/transfer for now.

Here it is how I saw it. The reality with 9.95% is not that far from that neither:

- With 9.95%, the monthly paymt is $218.65 + dues of $66.35 = $285.00 monthly, $3,420.00 annually.
- With 13.50%, the monthly paymt is $252.47 + $66.35 = $318.82 monthly, $3,825.84 annually.

A total difference of $33.82 monthly, $405.84 annually.

What I'm looking of DVC is not only the short terms benefits it may have, is the long term benefits too. If I buy now I will have 48 years of benefits, if I buy later that number will get lower, and I will be helping someone else to pay for his DVC if I keep paying annually $2,000.00 renting (in reality it will be more, because we use at least 266) and I'm looking forward to be able to pay in full before the 10 years.

I was going to ask, how much is the APR% with resales? Can you make additional payments to the principal?

 

[dianeschlicht]

With a resale, you have to get your own financing, and that means qualifying for it as well. Disney will be easier to qualify for.

 

[zdesiree]

With a resale, you have to get your own financing, and that means qualifying for it as well. Disney will be easier to qualify for.

That's what I thought. THANKS!!

 

[Dean]

What about doing a smaller resale and adding on later through DVC when you can afford to do so with cash. I can't think of a situation purchase where it's reasonable to pay 13% or even 10% interest on the purchase of a luxury item, even if it means never buying. I just cringe when people look at purchases in terms of the monthly payment, it is not a reasonable way to do so.

 

[ZipaDeeDooDah]

Good vibrations coming your way!!!

 

[cobbler]

Congrats but OUCH! 13.5% is a bit. I too would look at a small resale contract and add on later when you either get the cash or you turn your credit around.

 

[2giddy4wdw]

I wish you good luck in your new adventure!!!! Always remember to do what you think is right, not what others may tell you. Only you know what you can afford. Congratulations and "welcome home!!!"

 

[zdesiree]

I wish you good luck in your new adventure!!!! Always remember to do what you think is right, not what others may tell you. Only you know what you can afford. Congratulations and "welcome home!!!"

Thank You So Much!! Believe me, before I make a decision I investigate so much that my husband laughs when he sees me doing that. When I bought my digital camera, I spent 3.5 months investigating to make a decision what camera to buy.

 

[2giddy4wdw]

Thank You So Much!! Believe me, before I make a decision I investigate so much that my husband laughs when he sees me doing that. When I bought my digital camera, I spent 3.5 months investigating to make a decision what camera to buy.

OMG if that doesn't sound like me and DH. You should have seen him when we were buying a fish tank!!! I think the only thing we didn't take long on was DVC only because we love Disney so much and we knew that we could afford to make payments. We are using our other money for DS college, so financing was ok for us. But everyone needs to make decisions for themselves!!!

 

[2giddy4wdw]

By the way...where are you buying into?

 

[Wish I lived in Fl]

This is really important for me, I'm doing this for my kids, I want to give them something real special, and it will be so disappointing not to be able to get it.
QUOTE]

I'll be the voice of dissent. Sometimes the best things we can do for our children are the boring things. Funding our retirement savings so that they don't have to help support us. Funding college or career prep so they don't have to start off working life $40,ooo in debt.

A WDW trip is a luxury. Owning DVC is an even bigger luxury. Kids don't need WDW every year. I think every 2 or 3 years or even 5 years would still be pretty wonderful.

 

[Lenc324]

I would go with a smaller more afordable contract. 13% is a lot.

 

[zdesiree]

By the way...where are you buying into?

Saratoga, that by the way I never been there.

 

[zdesiree]

I'll be the voice of dissent. Sometimes the best things we can do for our children are the boring things. Funding our retirement savings so that they don't have to help support us. Funding college or career prep so they don't have to start off working life $40,ooo in debt.

A WDW trip is a luxury. Owning DVC is an even bigger luxury. Kids don't need WDW every year. I think every 2 or 3 years or even 5 years would still be pretty wonderful.

I agree with you in the Funding, but they are kids only once too, and I don't want them to have a memory only of "my mom was great, because she saved money for us" I want them to have a memory too of "my mom was great she always looked for a way to spend real quality time with us". I'm a very busy working mother and right now my husband spends more time with them than me, we took a vacation with the kids last year for the first time, before that, the last time I traveled was in 1991, I always been working since then. I see this like a way to make sure to take a vacation with them.

Now in August I'm going with my husband for our honeymoon, because when we got married I went to work the next monday morning.

 

[Dean]

I agree with you in the Funding, but they are kids only once too, and I don't want them to have a memory only of "my mom was great, because she saved money for us" I want them to have a memory too of "my mom was great she always looked for a way to spend real quality time with us". I'm a very busy working mother and right now my husband spends more time with them than me, we took a vacation with the kids last year for the first time, before that, the last time I traveled was in 1991, I always been working since then. I see this like a way to make sure to take a vacation with them.

Now in August I'm going with my husband for our honeymoon, because when we got married I went to work the next monday morning.

One can still take advantage of DVC by renting or even through Interval International without this expensive commitment. Buying is not the only way to provide vacations. And off property condo's and timeshares can be had for even a fraction of that.

 

[rantnnravin]

Enjoy your kids
Although it wasn't at 13%, we did finance our DVC purchase and are very happy that we did. DH and I work very hard all year and I work a second job just to pay our DVC, so i can relate to where you're coming from.
Everyone has their own opinions on this and here's mine: Your children are young once, you only live once, and you're going to die eventually. You can either work hard all your life and never give yourself anything to enjoy while you're alive, or you can enjoy the fruits of your labor: I choose the latter.
Secondly: we got a mortgage so that we wouldn't have to pay the same amount each month to someone else. We are going to vacation every year anyway, why pay someone else that same amount, when it can be ours in a few years?
Next: you could get a lower rate loan elsewhere (ie HE, etc) but DVC financing is great because if you screw up, they just take the contract back (I am not saying that there aren't repercussions - just that you won't lose the house over it)
Then: you have to consider that if you are recovering from the consequences of those past credit problems, you can very likely pay extra towards your principal on the DVC, effectly lessening the amount paid toward interest. Make a commitment to do this, don't just give it lip service. (ex: we are paying an extra $100 per month on our mortgage now and will have it paid off in half the time--we don't miss the money)

Enjoy your kids, rest in your purchase and take your vacations without guilt. You'll be glad you did.
JMHO
be well.

 

[pickles]

I sure can sympathize with you! 9/11 came at a very bad time for us and ruined us financially. We saw an attorney and while we didn't file bankruptcy at the time, we essentially did bankruptcy and consider debts prior to that time as "bankrupt" Fast forward to the present time and we are doing well finacially again. We have no credit card debts, no car debts and our mortgage is easily paid with plans to pay it off within the next 2 years. My inlaws feel like we should pay those old debts(even if we had filed the bankrupt papers). So, you can imagine their input on our DVC purchase. They are lucky their son put a leash on my mouth the other day as I would have told them where they could stick their nose and advice.

While I do understand greatly what you want to do, do make sure this isn't going to put you back where you were a few years ago ..remember it was credit that got you there in the first place.
I really like other people's advice ..buy a contract that you can pay cash for. Maybe you can buy just 150 pt with Disney without financing? or maybe buy a small contract at OKW without financing and then you can buy small amount of points thru Disney as you have cash. This will get your goal, save you money and cause you less stress each month at bill time.

Do recall with Disney it isn't the DVC that is going to cost you , there is also, travel food and tickets.