How debt resolution actually works
Not a loan, not credit repair, and not a payment plan through your creditors. Here is the whole mechanism — including the parts that are uncomfortable.
The idea
Creditors would often rather take part of the balance than risk all of it
Unsecured debt has no collateral behind it. When a lender believes a borrower may charge off, file bankruptcy, or simply become uncollectible, a reduced lump-sum payoff today can be worth more than a full balance they may never see.
That is the entire leverage of debt resolution. We negotiate on your behalf, and we negotiate from a position where there is real money sitting in an account ready to close the account today.
You could do this yourself, for free. Many people do, and we will tell you so. What we bring is volume, existing creditor relationships, negotiators who do this all day, and a structure that keeps you on track for two to four years. If you have three accounts and the stomach for the phone calls, self-negotiation may serve you better.
Eligible debt
- Credit cards and store cards
- Unsecured personal loans
- Medical and dental bills
- Collection and charge-off accounts
- Repossession deficiency balances
- Certain business lines and merchant cash advances
Not eligible
- Mortgages, HELOCs, auto and title loans
- Federal student loans and most private student loans
- Federal, state, and local tax debt
- Child support, alimony, court fines and restitution
- Accounts already reduced to judgment with active garnishment
- Utility, insurance, and accounts you intend to keep using
Step by step
From first call to final settlement
Typical timeline for a 30-month program. Yours will differ.
Free hardship review — day 0
A certified specialist takes 20–30 minutes to go through your accounts, your income, your expenses, and what changed. We ask what you can genuinely afford, not what you'd like to afford. You'll hear a plain assessment of whether a program fits, and what the alternatives are — including doing nothing, credit counseling, consolidation, and bankruptcy.
Cost: $0. No credit pull is required to give you an estimate.
Written program agreement — days 1–5
If you want to move forward, you receive a written agreement that lists every account by creditor and balance, your monthly deposit, your estimated program length, the exact fee percentage, the dedicated account bank and its monthly fee, and a plain-language statement of risks. Review it, ask questions, take it to an attorney if you'd like. Nothing begins until you sign.
Your state may also require a specific right-to-cancel period — it will be stated in your agreement.
Dedicated account opens — week 1
An FDIC-insured account is opened in your name at an independent, unaffiliated bank. Sight Solutions Group cannot withdraw from it unilaterally. Your monthly deposit is drafted into it on a date you choose. This is where the leverage comes from — a creditor is far more likely to settle when funds exist to close the account now.
You stop paying enrolled creditors — month 1
This is the hard part, and it is where the risk lives. Continuing to pay minimums while also funding your account is usually impossible, and creditors rarely negotiate on current accounts. Enrolled accounts will go delinquent. Your credit score will likely drop. Collection calls will increase, at least for a while. Interest and fees may continue to accrue on those balances. A creditor may sue. We tell you this before you sign, not after.
Negotiation begins — months 3–8
Once your account holds enough to make a credible offer, negotiators begin working your highest-leverage account. Creditors have their own internal thresholds, and timing matters — accounts nearing charge-off often settle for less. We prioritize accounts by leverage, risk of litigation, and balance.
You approve each settlement — ongoing
Every negotiated offer comes to you in writing with the payoff amount, the payment schedule, and the fee that would be earned. You approve or decline. If you decline, we keep negotiating. Funds release from your account only on your authorization, and the fee for that account is earned only after the settlement is agreed and the first payment is made.
Repeat until resolved — months 8–48
Each settled account frees capacity for the next. Most clients see their first settlement within four to eight months and finish the program in 24 to 48 months. Some accounts never settle; those you may need to pay directly, dispute, or address another way, and we will tell you when we've hit that wall rather than run out your clock.
Graduation
When your last enrolled account is resolved, the program ends, drafting stops, and any remaining funds in your dedicated account are yours. You'll receive settlement letters for your records — keep them, and expect possible Form 1099-C filings from creditors for forgiven amounts over $600.
Where the money goes
Follow one $500 monthly deposit
| Step | Who holds it | What happens |
|---|---|---|
| You deposit $500 | Third-party bank | Drafted from your checking into your own FDIC-insured dedicated account |
| Bank fee: ~$10 | Third-party bank | The account maintenance fee charged by the bank, not by us |
| $490 accumulates | You | Balance builds until it can fund a settlement. You can see it any time. |
| Offer presented | You decide | Written offer sent to you — e.g. $3,100 to close a $6,900 balance |
| You approve | You authorize | Funds release to the creditor on the agreed schedule |
| Fee earned | Sight Solutions Group | Only now — after settlement, your approval, and at least one payment made |
| You cancel instead | You | Withdraw your remaining balance. No cancellation fee, ever. |
Illustrative example using hypothetical figures. Actual deposits, settlement amounts, timing, and fees vary by client, creditor, and state, and no particular result is guaranteed.
Read this part twice
Everything that can go wrong
Any firm that won't put this in front of you is not one you should hire.
Credit impact
Ceasing payments to enrolled creditors will likely cause significant, lasting damage to your credit score. Delinquencies remain on your credit report for up to seven years from the date of first delinquency, and settled accounts are typically reported as “settled for less than the full balance.” If you need financing in the next one to two years, this program will make that harder.
Growing balances
Interest, late fees, over-limit fees, and other charges may continue to accrue on unpaid enrolled accounts. The balance we ultimately negotiate may be larger than the balance you enrolled, which can reduce or eliminate the savings you expected.
Collections and lawsuits
Enrolling does not stop collection activity. Creditors and collectors may continue to contact you and may file suit at any time, which can result in a judgment, wage garnishment, or a bank levy depending on your state. We are not a law firm and cannot represent you. We will help you understand your options and may prioritize an account facing litigation, but we cannot prevent a lawsuit.
Creditors who won't negotiate
Some creditors have a policy of refusing to work with debt resolution firms. Some will negotiate only on terms that don't benefit you. We cannot force any creditor to settle, and accounts that don't settle remain your responsibility.
Taxes
The IRS generally treats forgiven debt of $600 or more as taxable income, and creditors may issue Form 1099-C. Exclusions exist, most commonly insolvency, but they must be claimed properly. Consult an independent tax professional; we do not provide tax advice.
Not completing the program
A substantial share of clients across this industry do not complete their programs. Clients who withdraw early may be left with accounts in worse condition than when they enrolled — delinquent, larger, and closer to litigation — while having paid fees on any settlements already completed. Do not enroll unless you are confident you can sustain the deposit.
Still think it might fit?
Then let's find out for certain. A free review, and a straight answer either way.