TurboDebt debt relief: 2025 Review

TurboDebt generally offers debt relief assistance for unsecured debt, meaning debt that is not tied to collateral like a home or vehicle. The TurboDebt website specifically mentions that borrowers can find tax relief in the following areas:

• Business debt

• Credit card debt

• Divorce debt

• Medical debt

• Personal loan debt

• Retirement debt

• Student loan debt

• Veteran debt

Ineligible debts

TurboDebt acknowledges that “not all debts are eligible for enrollment.” However, the company does not explicitly state which debts are ineligible. Generally, the following types of debt are excluded from debt settlement services:

• Auto loans

• Debts from lawsuits or court judgments

• Governmental loans

• IRS debt

• Mortgages, home equity loans or HELOCs (home equity lines of credit)

• Utility bills

• Other debt secured by collateral

TurboDebt specializes in debt settlement, a form of debt relief that involves negotiating with creditors to resolve your debt for an amount lower than the amount you owe.

To this end, Turbo Debt provides the following services:

• Free consultation with a TurboDebt team member: This will determine if you qualify for enrollment, and if so, which of your debts can be enrolled. 

• Customized debt relief plan that fits your budget: This service has no upfront fee.  

• Administration of your debt-repayment savings account: Instead of making payments to your creditors, you will pay the amount determined by your custom debt relief plan into a savings account each month. The funds in this account will be used to pay the settled amount to your creditors, as well as TurboDebt’s service fees. TurboDebt’s fees are paid as accounts are settled. 

• Negotiations with creditors: TurboDebt’s debt arbitrators will work with your creditors to negotiate settlements. While creditors are under no obligation to negotiate, TurboDebt claims to work with over 10,000 creditors to offer debt relief solutions.   

• Settlement payments: As settlements are negotiated, TurboDebt will make the agreed-upon lump-sum payment to your creditor in exchange for having the rest of the debt forgiven. Only then will TurboDebt take its fee for service from your designated savings account. 

As with most legitimate debt relief companies, TurboDebt does not charge any upfront fees. Instead, when a debt is settled, TurboDebt takes 25 percent of the enrolled debt. 

It is important to understand that the fees are based on the amount of debt enrolled, not the amount of debt forgiven. This fee is paid from the special savings account you pay into each month, so you do not have to come up with this amount on the spot.  

Late fees, interest expenses and other penalties can continue accruing on your accounts while arbitrators are negotiating settlements.

Credit score consequences

Your credit score will take a hit due to debt settlement, regardless of which debt relief company you choose. 

Debt settlement works by leveraging your inability to repay your debt to negotiate partial forgiveness. The longer you fail to pay your creditors, the more willing they may be to accept a lower amount than your balance due. This is why you stop paying creditors and pay into the special savings account while you’re enrolled in a debt settlement program. 

All these missed payments are reported to credit bureaus, which will bring down your credit score the entire time you’re enrolled in the program. This will negatively affect your ability to qualify for new credit, such as a home loan or auto loan. Even if you do qualify, you will likely have to pay a much higher interest rate than you would if you had a better credit score. 

TurboDebt recommends that you “avoid taking out new loans for at least one year after you clear your debt" to give yourself time to improve your credit following the settlement. If you plan to apply for a loan in the next few years, you may need to explore alternatives to debt settlement.

Risks of debt settlement

Settlement offers a path to getting out of debt without paying the full amount owed. However, there are multiple risks of debt settlement to weigh before proceeding:

• High overall cost: Between the amount of settled debt, late fees and the settlement company’s charges, you could end up paying more than if you had simply paid off the debt in full.

• Long-lasting credit damage: Even after the settlement is finalized, it remains on your credit report for several years, negatively affecting your ability to qualify for a loan or even rent an apartment.

• No guarantees: Creditors are not required to negotiate, so you could end up in a worse financial position than when you started.

• Potential tax consequences: Any forgiven debt might be considered taxable income. While the IRS does provide certain exceptions and exclusions, it's wise to consult a tax professional to understand your tax liability.

• Prolonged timeline: The debt settlement process often takes two to four years to complete, and then you’ll need time to rebuild your credit score.  

Given these potential drawbacks, you may want to consider other debt-relief options such as:

• Credit counseling 

• Debt consolidation

• Debt management

To be eligible for the TurboDebt program, you must:

• Owe at least $10,000 in unsecured debt

• Prove you are experiencing financial hardship

• Live in one of the states or U.S. territories supported by Turbo Debt (services not available in Oregon, Vermont or West Virginia)

Unlike debt consolidation, which involves qualifying for a new loan to cover the existing debts, debt settlement does not have a minimum credit score requirement.

• BBB rating and accreditation: BBB Accredited with an A+ Rating

• BBB customer reviews: 4.91 out of 1,297 reviews

• ConsumerAffairs: 4.2 out of 11 reviews

• Google reviews: 4.9 out of 6,131 reviews

• Trustpilot: 4.9 out of 11,194 reviews

Review information accurate as of January 9, 2025.

Reviews for TurboDebt are mostly positive, with many reviewers expressing appreciation for the easy enrollment process and helpful consultants. 

It’s worth noting that many reviews appear to be published soon after enrolling with the company or declining service. The positive reviews praise the friendly consultants for taking the time to explain all debt relief options, including those that TurboDebt doesn’t offer, such as debt consolidation. Many of the negative reviews mention that the consultant spoke too quickly, didn’t explain the options in clear terms or was “pushy.” 

There are comparatively few reviews relating to the results of the service. However, there are testimonials on the company website from customers who were satisfied with the outcome of their debt settlements, offering proof that the program can work. It is common to see negative reviews for debt settlement companies from customers who are concerned about how long it takes to settle debt and how much their credit scores drop during the process.    

Accreditations

TurboDebt holds the following accreditations and certifications:

• Accredited by the Better Business Bureau (BBB)

• Accredited member of the American Association For Debt Resolution (AADR)

• Certified through the International Association of Professional Debt Arbitrators (IAPDA)

Phone: 844-930-3724

Operating hours:  Monday through Sunday: 8 a.m. to 9 p.m. EST

Address: 1643 NW 136th Ave, Building H, Sunrise, FL 33323

Fax: n/a

Email: contact@turbodebt.com

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