TurboDebt Review: A Legit Debt Solution, But Costly
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- APR
- 15% to 25% of enrolled debt
- Min. credit score
- Not required
Our verdict
This debt relief company may be able to settle your debts for less, but not without a hefty price tag.
TurboDebt is a debt settlement company — or a debt relief firm, as it refers to itself — that negotiates your debts for a lower amount than you actually owe. To date, it’s settled over $15 billion in debt, and it states that consumers can save an average of 46% on their total enrolled debt. However, that figure is before fees, so in reality, you may only save closer to 20%. Plus, going through this type of program typically hurts your credit score and makes it more difficult to qualify for credit in the future.
Best for: People with a large amount of unsecured debt who can’t make their monthly payments or are considering bankruptcy.
Pros
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May resolve your debts for less than you owe
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Don’t have to pay fees until debt is resolved
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Includes settlement of certain types of student loans
Cons
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Fees up to 25% of enrolled debt
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Could cause a significant credit score drop
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May owe taxes on the forgiven portion of the debts
Is TurboDebt legit?
Yes, TurboDebt is a legitimate, certified debt relief company that has helped more than 500,000 people find financial freedom by settling over $15 billion in debt. It has high ratings with both the Better Business Bureau (BBB) and Trustpilot, with thousands of positive reviews.
It’s also accredited by the American Association for Debt Resolution (AADR), formerly known as the American Fair Credit Counsel (AFCC).
What makes TurboDebt shine?
For people who can’t get a handle on their debts or are considering bankruptcy, a debt relief company like TurboDebt can be a path to financial freedom. It works with clients individually to develop a payment plan that works for them, realizing there is no one-size-fits-all approach to achieving relief from debts.
It also doesn’t charge any upfront fees. It only charges you after you’ve paid off your enrolled debt. Unlike some debt settlement firms, it doesn’t charge monthly fees or a fee to enroll.
Where TurboDebt falls short
One of the biggest drawbacks to TurboDebt is that it charges up to 25% in fees to settle your debts. For example, if you have $60,000 in enrolled debts, you could pay as much as $15,000 for the service. These settlement fees can take a serious bite out of the “savings” you make by going this route rather than opting for a less expensive debt repayment plan.
While this is not unique to TurboDebt, enrolling in a debt settlement plan can severely impact your credit. By requiring clients to stop paying their debts, most of your creditors will report your delinquent accounts to the credit bureaus, making it difficult to get a loan or credit in the future.
Finally, TurboDebt cannot guarantee how much you can save, and there is no recourse if the estimate you were given when you enrolled doesn’t come to pass. It also can’t guarantee that creditors will settle your debt for less at all. Plus, debt settlement opens you up to potential lawsuits by banks or other creditors.
How much can I save?
Consumers who complete the program save an average of 46% before fees or about 25% after fees, according to TurboDebt. However, there is no guarantee that you can save this much. Factors that affect how much you save include how much debt you have, what creditors accept as a settlement and your overall financial picture.
How much does it cost?
How much TurboDebt costs really depends on how much you owe. TurboDebt states on its website that it charges between 15% to 25% of your total enrolled debt. For example, if you enroll $20,000 in debt, you can expect to pay anywhere from $3,000 to $5,000 for TurboDebt’s services.
Will TurboDebt hurt my credit?
Yes, negotiating debt for less than you owe — which is what debt settlement companies do — can negatively impact your credit score. As part of the process, you must cease payments on your debts before TurboDebt will negotiate a lower payoff amount. When you stop making payments, it is reported to the credit bureaus and your score can drop significantly.
Eventually, your score will rebound as you get back on track, but it could take a long time. This drawback is an important point to consider before entering into debt settlement. If you’re managing your debts without making late payments but are just looking to clear your debt faster, this might not be the right solution. However, if you struggle to make even your minimum debt payments and are contemplating bankruptcy, you may want to consider a debt settlement plan.
TurboDebt details
| Free quote or consultation | Yes |
| Services | Debt settlement and customized repayment plans |
| Minimum Debt | $10,000 |
| Average turnaround | 24 to 48 months |
| Fees | 15% to 25% |
| Types of debt | Credit card debt, medical bills, veteran debt, student loans, divorce debt, personal loans, retirement debt and business debt |
| Accreditations | American Association for Debt Resolution (AADR) |
| Direct or third-party negotiations | Direct |
| State availability | Available in: Alaska, Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Louisiana, Massachusetts, Michigan, New Mexico, New York, Oklahoma, Texas, Utah, Washington, Wisconsin Also available in: Guam, Puerto Rico, US Virgin Islands |
Before you sign up with a debt relief company
Debt relief companies typically charge a percentage of a customer’s debt or a monthly program fee for their services. Some companies aren’t transparent about these costs or drawbacks that can negatively affect your credit score. Depending on the company you work with, you might pay other fees for setting up new accounts or third-party settlement services, which can leave you in a worse situation than when you signed up.
Consider alternatives before signing up with a debt relief company:
- Payment extensions. Companies you owe may be willing to extend your payment due date or put you on a longer payment plan.
- Nonprofit credit counseling. Look for free debt-management help from nonprofit organizations like the National Foundation for Credit Counseling.
- Debt settlement. If you can pay a portion of the bill, offer the collection agency a one-time payment as a settlement. Collection agencies are often willing to accept a lower payment on your debt to close the account.
TurboDebt contact info
| Phone number | 844-945-1545 |
| Customer service hours | 24/7 |
| contact@turbodebt.com | |
| @debt_turbo | |
| @TurboDebt |
How to qualify for TurboDebt
The requirements to qualify for a debt relief program with TurboDebt are simple.
- Have at least $10,000 in debt
- Have unsecured debts
- Be able to make regular monthly payments
- Live in a state that TurboDebt services
How the debt settlement process works
You can call or start the application process online by answering a few questions. From there, you’ll:
- Speak with a debt specialist during a free initial consultation.
- Review your debt relief options.
- Choose a program and enroll.
- Start making more affordable monthly payments.
- Have TurboDebt negotiate with your creditors on your behalf.
You may expect to have your debts settled within 24 to 48 months, more or less, depending on how much you owe, what the creditors are willing to settle for and how much you can afford to pay each month.
How TurboDebt compares to other providers
TurboDebt reviews and complaints
| BBB accredited | No |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 4.92 out of 5 stars, based on 1294 customer reviews |
| Trustpilot Score | 4.9 out of 5 stars, based on 11,197 customer reviews. |
| Customer reviews verified as of | 21 October 2024 |
TurboDebt has high ratings on both the BBB and Trustpilot, based on thousands of reviews. Satisfied clients say company representatives were professional, helpful, empathetic and encouraging about the future. Others complained of excessive solicitation and high fees, and some described customer service reps as rude or aggressive.
What do people on Reddit say?
Risks of debt settlement
It’s important to be aware of the risks involved with debt relief programs before you sign up.
- Some creditors may sue you while you’re going through the process.
- Your credit score takes a hit once you stop paying your debts.
- You may have to pay income tax on the forgiven debt.
- Some creditors may not accept a lower settlement.
- Interest and late fees usually continue to accrue, putting you deeper into debt.
- It will likely be much harder to qualify for credit or a loan, at least in the next year or two.
Your reviews
Lacey Finder
Writer
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