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DoingItOnMyOwn

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Should I take a personal loan to pay off timeshare with high interest rate?
I was suckered into buying a timeshare almost 2 years ago & the company who manages my loan is not/does not report on my credit & I couldn't even find them when attempting to add the account. They are also a TERRIBLE company! I knew my interest rate was high at 15%, but for 2 years I have been paying $200/month (~$80 more than my payment), and I have only paid off $600 from the principal balance. If you just google "Monterey Financial Services", you'll see a slew of complaints about this companies poor business practices.

Long story short, I would like to get as far away from them as possible. I received an offer from Discover for their personal loan/debt consolidation services, so I finally started looking into my options. My question is...if monterey isn't reporting on my credit, should I take out a new loan (with much lower interest rate) to pay them off & how bad will this affect my credit? Could they then report it as a closed account & thus affect my credit twice? There are obviously some follow up questions & things I would have to think about when pulling the trigger, so additional thoughts or info anyone has to share would be great!

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same here!

I am going through the same exact situation. Looking for the best solution!

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If they aren't reporting now, I doubt if they start reporting once you pay it off, and even if they do, that would be considered a good account for your credit report and scores.  Go ahead and pay them off.  Your score will drop a bit with the new loan, which is normal, but will rebound after a few months of payments.  Best of luck!

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