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Today I want to talk about settlements and the payment options with a particular creditor, synchrony Bank is somebody that does a lot of branded cards, so you could have a PayPal, that's serviced by synchrony, you could have a Lowe's card, that's serviced by synchrony, you could have your Banana Republic or gap card, that's serviced by synchrony, synchrony does a hell of a lot of branded cards and a Care Credit, another example used to be GE Capital.
I change the name to synchrony, right around the height of the banking implosion recession that we recently had, synchrony is pretty unique in that, they have a different approach in with how they settle with you, and when what kind of targets that you can aim at, when you're trying to settle a deal directly with synchrony, you're not going to have a lot of opportunities like I've talked about in other posts, like early opportunities where Citibank might send your account out to a debt collector early on, and you'll have an opportunity to settle maybe before six months, or Amex is another one you can sometimes do some settlements early, synchrony is going to go right to the end of that charge off mark, and if you don't know what I'm talking about, check out some of our other posts about timing your settlements with your original creditor, because most banks follow a very predictable collection type of timeline, it goes from when you stopped paying until they have to charge off or accept your debt, your unpaid debt as a loss against their quarterly loss reserves, it's going to hit their books up until that point where they have to do this counting function charge up, they consider you an asset, once you charge off or right up until you're charged off, banks are going to be pretty aggressive in their collection, it get you on track.
Let's get you to payment, we've got this kind of option for you, but if your goal is to negotiate a settlement at a reduced amount, you have to sometimes hit that wall when they're about to take the loss, that means that you reach out to synchrony in just a few days even a week, before that charge off date, how do you know for sure when that date is asking them? You're usually pretty upfront about telling you, this is like your third or fourth payment, you haven't made a payment for 3-4 months, and you're on the phone with them, and you happen to pick up one of their frequent calls or you make a proactive call, and you ask them, it's never been my intention to not pay, I just can't pay, I'm still working on some things. I'd like to get caught up as soon as something kicks loose for me, or when do I charge off using that phrase that sometimes a little tip-off that a little bit, but there's a ton of articles and everything on the internet teaching about charge off and credit card debt, so it's not a question, that's going to come out of the blue for them, and they might tell you that exact date, when you know that date or you're close to knowing that day, you can then time your efforts to settle with them, that's what I do as a negotiator somebody who works with people to resolve their debts, I'm timing those things in my efforts, and I'm just sharing that with you.
Now synchrony sells a lot of their debt at charged-off, it's something to avoid or it's something to embrace, so let me explain debt that you do not pay for long enough, most creditors will sell off traditionally, right now we're in a lull of debt sales, but synchrony is one of the ones that's continued on with them, Chase stopped selling debt in 2013, for example, and hasn't started, again at the time I'm doing this in 2016, they have sold at me again, but sacred never stopped, they sell that to debt buyers, and those debt buyers will subject your account to certain collection practices, you can settle with a debt buyer, you can settle with an outside third-party debt collection agency, that synchrony might send your account to these, these are all good things, you can continue on your path to negotiate your debt even after charge off, so don't get hung up on the fact, if you can't settle your debt with synchrony before it charges off, you're still going to have opportunities to do that.
What I would caution you in letting things go too long with synchrony debt that is sold off is because some of the places they sell their debt to are highly litigious, more litigious than some banks, even so, one of those is Portfolio Recovery Associates, PRA synchrony sells a lot of debt to PRA, PRA sues on debts that are $500, they don't care when that happens, you can even settle, then it's just going to be more cost-effective typically to get your settlements done before active litigation is filed, so timing your efforts with either pre-charge off, dealing directly with synchrony, I typically target between thirty and forty percent of your balance owed, so if it's a $10,000 account, thirty percent would be three thousand, forty percent four thousand, and then after they charge off dealing with an outside third-party debt collector, my targets don't change too much in, and around thirty, thirty five percent with certain debt buyers.
We cover most of the major debt buyers here in separate posts on our youtube channel, like pra or midland funding is another very large debt buyer, and if they're picking up synchrony debt, my targets with them are a little different than with pra, but let's talk about your particular synchrony account in the comments below, let me know what your balance is when you last made a payment, the regularly scheduled minimum payment to synchrony, and if you are dealing honestly with asynchrony account, that is with somebody else other than synchrony name, that debt collection agency or debt buyer, and i can give you some feedback about the targets that you want to try and hit, when you're trying to negotiate these some of these settlements can be done with monthly payment terms, so that's going to vary from one agency to the next, as far as how long you can get to pay that 30 40 50 percent.