Last updated 2026-07-26
TL;DR
Dave Ramsey's advice is blunt: timeshares are a bad investment, you likely can't sell for real money, and you should be very wary of exit companies. That's mostly right. But 'just sell it for a dollar' ignores that most resorts won't approve a deed-back, and 'never pay an exit company upfront' is good advice that still leaves owners with few real options.
What does Dave Ramsey actually say about timeshares?
Dave Ramsey has been consistent for years: timeshares are, in his words, a bad financial product dressed up as a vacation solution. His site and radio show tell callers that a timeshare is not an investment, it's a prepaid vacation plan with fees that rise every year, and that the resale market is so weak most owners can't sell for any meaningful price. His standard advice runs in three parts. First, stop thinking of it as an asset; it's a liability, similar to a car payment that never ends. Second, if you want out, try selling it yourself for whatever you can get, even a dollar, through a licensed timeshare resale broker or by giving it back to the resort if they'll take it. Third, avoid timeshare exit companies that want thousands of dollars upfront to 'get you out,' because Ramsey's team has fielded enough complaints from listeners to treat the entire upfront-fee exit industry as a red flag. That framing lines up with what state regulators and the FTC have found. The Federal Trade Commission has sued timeshare exit companies for taking large upfront fees and doing little or nothing to cancel contracts [1]. Ramsey isn't wrong to warn people off that model. Where his advice gets thinner is in the specifics: what actually happens when you try to give a timeshare back, how rescission windows work, and what to do if deed-back and resale both fail.
Is Dave Ramsey right that timeshares are a bad deal?
Mostly, yes, on the numbers. The average annual maintenance fee for a timeshare in the American Resort Development Association's 2023 industry study was $1,170, and that's before any special assessment for a roof, pool, or hurricane repair [2]. Fees climb most years, often faster than general inflation, because they're driven by resort operating costs and reserve fund requirements set in the timeshare's governing documents. The purchase price side is worse. ARDA reports the average per-interval purchase price for a timeshare in 2023 was around $23,940 [2]. Resale prices for that same interval are frequently a small fraction of what the original buyer paid, sometimes close to nothing, because the resale market is flooded with owners trying to exit and developers keep selling new inventory directly. That mismatch between what people paid and what the interval is worth on the secondary market is the core of Ramsey's argument, and it holds up. Where it's more nuanced: not every timeshare is a disaster. Owners who bought resale for a few hundred dollars, use their week every year, and treat the maintenance fee as a fixed vacation cost can come out reasonably fine compared to booking hotels at market rates. The math turns bad specifically when the fees rise faster than the owner's use of the property, when the owner stops traveling, or when a special assessment lands. Ramsey's blanket 'bad deal' framing is a fair generalization but not a universal truth for every single contract.
What is the Dave Ramsey timeshare exit strategy, step by step?
Ramsey's playbook, as laid out on his site and in his call responses, breaks into a short sequence. Check if you're still inside your rescission period. Most states give new timeshare buyers a short window, often five to fifteen days depending on the state, to cancel the contract for any reason and get a full refund, no explanation needed. If you're still in that window, cancel in writing, by certified mail, following your contract's instructions exactly. This is the single fastest and cheapest way out, and Ramsey is right to put it first. If the rescission window has closed, his next step is to ask the resort about a deed-back or 'exit' program directly. Many major timeshare companies now run their own deed-back programs for owners in good standing, meaning fees paid current, no big balance owed. Ramsey doesn't dig deep into how inconsistent these programs are across resorts, but the instinct, ask the developer before paying anyone else, is correct and free. If deed-back isn't available, his advice shifts to reselling, even for one dollar, through a licensed resale broker rather than a company that charges large upfront transfer or 'closing' fees with vague promises. Finally, if none of that works and the owner is drowning in fees, Ramsey's fallback is blunt: stop paying and let it go to foreclosure, accepting the credit hit. That last step is the part that needs the most caveats, covered below.
What is the Dave Ramsey 'timeshare exit team' and is it a real company?
There's some confusion worth clearing up. 'Timeshare Exit Team' is a real, specific company (formerly operating broadly under that brand name) that markets itself as a timeshare cancellation service. Dave Ramsey does not own it, endorse it, or partner with it. The phrase 'dave ramsey and timeshare exit team' that shows up in search results is really two separate things people are trying to compare: Ramsey's general advice about timeshares, and a specific exit company whose name happens to include the words 'exit team.' Ramsey's own public commentary on exit companies as a category is skeptical, not specific to any one brand. He's told listeners repeatedly that the entire subindustry of upfront-fee timeshare exit firms attracts complaints, and that owners should be suspicious of any company asking for a large payment before doing any work. The Federal Trade Commission's enforcement history backs up that general caution: the agency has sued timeshare exit companies for deceptive practices, including taking fees while doing little to actually cancel contracts [1]. If you're researching a specific exit company by name, whether it's Timeshare Exit Team or any other, the smart move is to check your state attorney general's consumer complaint database and the Better Business Bureau before paying anything, and to ask for a written cancellation policy with a specific refund provision, more than a sales pitch. No legitimate company can promise it will get you out of a valid, enforceable contract; if a salesperson promises the contract will definitely be canceled, that's a warning sign, not a comfort. For a broader comparison of how these companies differ, see timeshare exit companies.
How do you get out of a timeshare, realistically?
There are really only a handful of legitimate paths, and they narrow fast depending on your timing and your resort. Rescission is the cleanest exit and it only works in a short window right after signing. Confirm your state's rescission window and follow the contract's cancellation instructions to the letter, in writing, by the method the contract specifies (usually certified mail). Miss this window and you're negotiating from a much weaker position. See timeshare cancellation for how these notices need to be worded. Deed-back or 'surrender' programs are the next best option if you're past rescission. A growing number of resort brands run formal deed-back programs, sometimes free, sometimes for a processing fee in the low hundreds of dollars, for owners with no delinquent balance. Availability depends entirely on the resort; some accept almost anyone, some have strict eligibility rules, and many smaller independent resorts don't offer one at all. Resale is legal but usually yields little to nothing. If you want to try it, use a licensed timeshare resale broker, list at a realistic price (often near zero for maintenance-fee-heavy properties), and never pay a big upfront fee to a 'resale specialist' promising a buyer is waiting. Doing nothing and accepting foreclosure is the last resort, and it's not free. Foreclosure damages your credit for years, and depending on your state, the resort may pursue you for the deficiency (the remaining balance after the foreclosure sale). Never stop paying maintenance fees or loan payments as a strategy without understanding your state's deficiency judgment rules first; that decision has real financial consequences beyond the timeshare itself. For state-specific first steps, see how to get out of a timeshare and how do you get out of a timeshare.
How do you sell a timeshare, and what's it actually worth?
Selling is legal, and for some owners it's the right move, but the expectations need to be realistic. The resale market for timeshares is oversaturated. Sites like eBay and the Timeshare Users Group forums are full of listings priced at $1 with the buyer only responsible for transfer fees, because sellers have accepted that the maintenance fee obligation is the real cost, not the interval's face value. To sell for real: use a licensed real estate broker who specializes in timeshare resale (check your state's real estate licensing board to confirm the broker is actually licensed, since many 'resale companies' are not licensed brokers at all). Price based on comparable recent sales, not what you originally paid. Expect the process to take months, not weeks, and expect the final number, if any, to be small. Watch for resale scams specifically: a caller claims to have a 'buyer already lined up' for your exact unit and asks for an upfront 'closing fee' or 'transfer tax' before the deal closes. This is one of the most common timeshare scams reported to state attorneys general and the FTC [1] [3]. A real buyer's closing costs come out of the sale proceeds at closing; you shouldn't be wiring money in advance to make someone else's purchase happen.
How much does a timeshare cost, in total?
| Purchase price (developer, new) | $15,000-$30,000+ per week/interval | ARDA 2023 average ~$23,940 [2] | |
|---|---|---|---|
| Resale price (secondary market) | $0-$3,000 | Often near-zero for high-fee properties | |
| Annual maintenance fee | $800-$1,500+ | ARDA 2023 average ~$1,170 [2] | |
| Special assessment | $200-$5,000+ | One-time, per-incident, resort-specific | |
| Exit company upfront fee (if paid) | $2,000-$10,000+ | FTC has sued companies over these fees [1] | This table is why the 'how much does a timeshare cost' question doesn't have a single answer. The sticker price is the smallest part of the real, lifetime cost for most owners. |
The upfront purchase price is only the entry fee. ARDA's 2023 State of the Vacation Timeshare Industry study puts the average purchase price per timeshare interval at roughly $23,940 and the average annual maintenance fee at about $1,170 [2]. Over a 20-year ownership period, assuming fees only keep pace with typical historical increases, total maintenance fee payments alone can exceed the original purchase price. Special assessments are the wildcard that Ramsey's advice underweights. These are one-time charges, on top of the regular maintenance fee, for major repairs, storm damage, or reserve fund shortfalls. They can run from a few hundred dollars to several thousand per interval, and owners typically have little ability to vote them down since the resort's board or management company sets them per the governing documents. | Cost component | Typical range | Notes |
Are timeshares scams?
The timeshare product itself is legal in every state; it's a real form of vacation property ownership or right-to-use contract, regulated under state real estate and consumer protection law. Calling the entire industry a scam isn't accurate. But the sales process and, separately, the exit industry, have both drawn heavy and repeated regulatory scrutiny, and a lot of individual companies within both have been prosecuted or sued for deceptive practices. On the sales side, state attorneys general have pursued timeshare developers and marketing companies over high-pressure sales tactics, misrepresenting the resale value, and misleading buyers about the ability to cancel later. On the exit side, the FTC's case record includes actions against exit companies for taking upfront fees, sometimes thousands of dollars, while failing to cancel the contracts they promised to cancel [1]. The honest answer: timeshares are not inherently a scam, but the industry attracts scam-like behavior at both the point of sale and the point of exit, and owners need to be skeptical at both ends. If a salesperson tells you the timeshare will appreciate in value or that you can easily resell it for profit, that's a documented pattern of deceptive claims, not a promise you can rely on. If an exit company promises it will get your contract voided and wants a big fee before doing anything, treat that the same way.
What does Ramsey get wrong or oversimplify?
Ramsey's biggest blind spot is deed-back reality. He recommends asking the resort to take it back, which is correct as a first move, but he doesn't dig into how uneven these programs are. Some brands have formal, well-publicized surrender programs; many smaller or independently operated resorts have no such option at all, and owners who call asking for one get nowhere. Ramsey's advice sounds like a sure thing when it's really a 'try it, it might work' step. His foreclosure fallback also needs more nuance than a radio segment allows. Stopping payment isn't cost-free. Depending on the state and the type of timeshare loan, the lender or resort's collections arm may pursue a deficiency judgment, meaning you owe the difference between what's left on the loan and what the foreclosed interval actually sold for at auction, which for timeshares is often nearly nothing, making the deficiency close to the full remaining balance. Credit damage from a foreclosure or charge-off can last up to seven years under the standard reporting period the Fair Credit Reporting Act sets for most negative credit information. He also doesn't spend much time on inherited timeshares, a growing share of the exit questions people actually have. Heirs are not always personally obligated on a deceased relative's timeshare contract, but the estate may be, and whether the heir can simply decline the inheritance (disclaim it) depends on state probate law and how quickly they act after the death. That's a genuinely different situation from a buyer's remorse case, and 'sell it for a dollar' doesn't address it.
How do you avoid a timeshare exit scam while looking for legitimate help?
The pattern repeats enough that regulators describe it almost identically across cases. A company advertises online or calls owners directly, claims a high success rate or promises the contract will be canceled, asks for a large payment upfront (sometimes disguised as 'attorney fees' or 'escrow'), and then does little or no actual work, sometimes just filing a form letter or nothing at all. Check these before paying anyone: is the company or any attorney it claims to use actually licensed in your state (check your state bar association's attorney lookup); does your state attorney general's office have complaints on file against the company (most state AG sites have a searchable consumer complaint or enforcement action database); does the company ask for payment in escrow, released only when the exit is confirmed complete, rather than all upfront; and does anyone promise a specific result, since no legitimate company can promise to void a legally binding contract. The FTC's own case filings describe exit-scam scripts that involve cold-calling timeshare owners, claiming an existing buyer or refund is available, and collecting a fee before delivering anything [1] [3]. Report suspected scams to the FTC directly at ReportFraud.ftc.gov and to your state attorney general's consumer protection division [4]. For a running list of numbers to call before you pay anyone, including state AG offices and licensing boards, see timeshare call list. If you want a structured, DIY starting point rather than a company pitch, ExitHonest's $149 one-time Timeshare Exit Kit walks through the rescission check, the deed-back request letter, and the documentation resorts actually ask for, built as a reference and template set, not a promise of a specific outcome.
What should you actually do this week if you want out?
Start with your contract, not with a search engine. Pull the actual purchase agreement and find the rescission clause; it will state your state's specific cancellation window and the exact method (usually certified mail to a named address) required to exercise it. If you signed within that window, act immediately; these windows are short by design and don't extend for any reason. If you're past rescission, call the resort's owner services line and ask directly whether they have a deed-back, surrender, or 'exit' program, and what the eligibility requirements are (usually no delinquent balance, sometimes a minimum number of years owned). Get anything they offer in writing before doing anything else. If the resort has no program, decide between a real resale attempt through a licensed broker and accepting that you may be stuck paying fees while you look for another way out. Don't sign with, or pay, any exit company before checking their complaint history with your state attorney general and the Better Business Bureau, and don't wire money to anyone claiming to have a 'buyer already lined up.' If fees are the real crisis (a special assessment you can't afford, for example), call the resort's owner services line first and ask about hardship or payment plan options; many resorts have informal programs for owners in temporary financial trouble that don't show up in marketing materials. For general orientation on the exit process across different starting situations, see how to get out of timeshare.
Frequently asked questions
How do you get out of a timeshare?
If you're still inside your state's rescission window, cancel in writing by certified mail exactly as your contract specifies. After that window closes, ask the resort about a deed-back or surrender program, try resale through a licensed broker, or in worst cases accept foreclosure and the credit damage that comes with it. Never pay a large upfront fee to an exit company.
How do you sell a timeshare?
Use a licensed timeshare resale broker (verify the license with your state real estate board), price it based on comparable actual sales rather than what you paid, and expect a low price, often near zero, since the resale market is oversaturated. Never pay upfront 'closing fees' to someone claiming a buyer is already lined up; that's a common scam pattern.
How much does a timeshare cost?
ARDA's 2023 industry study found the average purchase price per interval was about $23,940 and the average annual maintenance fee was about $1,170, before any special assessments. Over decades of ownership, maintenance fees alone can exceed the original purchase price.
Are timeshares scams?
The product itself is legal and regulated by state law, so timeshares aren't inherently scams. But both the sales side and the exit industry have documented patterns of deceptive practices, including FTC enforcement actions against exit companies for taking upfront fees without delivering cancellations.
Is Dave Ramsey right that you should sell your timeshare for a dollar?
It's reasonable advice for owners who just want out and have no realistic buyer, since resale prices for fee-heavy timeshares are often close to zero anyway. But it assumes a deed-back or resale option exists at all; many resorts don't offer one, so 'sell for a dollar' isn't always achievable.
Is Timeshare Exit Team connected to Dave Ramsey?
No. Timeshare Exit Team is an independent company, not affiliated with, owned by, or endorsed by Dave Ramsey. Ramsey publicly cautions against upfront-fee exit companies as a category; he has no partnership with any specific exit firm.
What happens if you just stop paying your timeshare?
The resort or lender can foreclose on the interval, which damages your credit for years under standard credit reporting timelines, and depending on your state and loan type, you may still owe a deficiency judgment for the balance the foreclosure sale didn't cover. Confirm your state's deficiency rules before treating nonpayment as a strategy.
Can you get out of a timeshare within the rescission period?
Yes, this is the fastest and cheapest way out. Every state gives new timeshare buyers a short cancellation window, but the exact number of days and the required cancellation method vary by state, so confirm your specific state's rescission window and contract terms before the window closes.
How much are timeshares in maintenance fees per year?
ARDA's 2023 State of the Vacation Timeshare Industry report puts the average annual maintenance fee at roughly $1,170, and fees generally rise most years. Special assessments for major repairs or storm damage come on top of that and aren't included in the average.
How do you get rid of an inherited timeshare?
Whether you're personally obligated depends on state probate law; heirs aren't automatically on the hook, but the estate may be. Disclaiming an inheritance (formally refusing it) is possible in many states if done within specific deadlines, so check with a probate attorney in the deceased owner's state before assuming you're stuck with the contract.
What red flags mean a timeshare exit company is a scam?
Large upfront fees before any work is done, promises that your contract will definitely be canceled, high-pressure sales tactics, and unsolicited cold calls are the main patterns regulators cite. Check your state attorney general's complaint database and the Better Business Bureau before paying anyone, and never wire money to a company claiming it already has a buyer for your unit.
Does Dave Ramsey recommend any specific timeshare exit company?
No. Ramsey's public advice is skeptical of the exit company industry as a whole rather than pointing listeners toward any specific firm. His standard recommendation is rescission if still available, then deed-back or resale, and avoiding companies that charge large fees upfront.
Sources
- Federal Trade Commission v. Consumer Advocacy Center Inc. et al. (timeshare exit relief company enforcement), Case No. 8:19-cv-00888, C.D. Cal.: FTC has sued timeshare exit companies for taking upfront fees without delivering promised cancellations or sales
- American Resort Development Association, State of the Vacation Timeshare Industry (2023): Average purchase price per timeshare interval (~$23,940) and average annual maintenance fee (~$1,170)
- Fair Credit Reporting Act, 15 U.S.C. § 1681c (requirements relating to information contained in consumer reports): Most negative credit information, including foreclosure and charge-off records, generally reports for up to seven years
- Consumer Financial Protection Bureau, "What is a deficiency judgment?": Foreclosure may leave a borrower owing a deficiency balance depending on state law and loan type
- Consumer Financial Protection Bureau: The CFPB provides guidance on debt collection practices relevant to consumers who stop paying timeshare maintenance fees or loans.
- U.S. Department of Justice: Federal prosecutors have pursued criminal and civil cases against fraudulent timeshare exit companies.