Turbo Debt is a debt settlement company that helps individuals reduce their unsecured debts, such as credit card balances, medical bills, and personal loans. Instead of taking out a loan, Turbo Debt works by negotiating with your creditors to settle your debts for less than what you owe.
Sarah stared at her credit card statements, her hands shaking. $47,000 in debt. The minimum payments alone were eating half her paycheck. That's when her coworker whispered about something called "Turbo Debt."
But was it too good to be true?
The Debt Crisis That's Crushing Americans
Here's a shocking truth that credit card companies don't want you to know: The average American carries over $6,000 in credit card debt. But for people like Sarah, the number can be much, much higher.
What is Turbo Debt?
It's a debt settlement company that promises to negotiate with your creditors and slash your debt by up to 50%. Sounds amazing, right?
Turbo Debt typically helps with unsecured debts—these are debts not tied to an asset like a house or car. Examples include:
- Credit card balances
- Personal loans
- Medical bills
- Some business debts
But before you get too excited, there's more to this story…
How Does Turbo Debt Work?
Turbo Debt, like other debt settlement companies such as TrueAccord, helps you reduce your unsecured debt by negotiating with creditors on your behalf. Instead of making full payments to your creditors, you’ll work with Turbo Debt to develop a plan to settle your debts for less than what you owe.
What sets Turbo Debt apart is its connection to National Debt Relief, one of the most trusted names in the industry. Turbo Debt acts as a specialized service under their umbrella, focused on helping individuals overwhelmed by unsecured debt like credit cards, personal loans, and medical bills.
Recommended Story: What Tom Learned the Hard Way About Accredited Debt Relief
The Turbo Debt Process
What we can say is it works like a carefully planned strategy:
Step 1: The Free Consultation. It starts with a no-cost phone call to discuss your financial situation and see if you qualify for their program. They listen to your story and crunch the numbers. No judgment, just facts.
Step 2: The Personalized Plan. If you qualify, Turbo Debt helps create a custom plan based on your specific debt and budget. This isn't a one-size-fits-all solution.
Step 3: The Dedicated Account. Here's where things get interesting. Instead of paying your creditors, you start putting money into a special account that Turbo Debt controls. You’ll be asked to make monthly deposits to that account. This money is used later to settle your debts.
Step 4: The Waiting Game. This is the scary part. Turbo Debt tells you to STOP paying your credit cards. Yes, you read that right. They want you to default on purpose.
Step 5: The Negotiation. Once your accounts are seriously behind, Turbo Debt swoops in to negotiate with angry creditors who are now willing to accept less money.
But wait... there's a catch that could change everything.
The Turbo Debt Reviews: What Real People Are Saying
Is Turbo Debt legit?
Yes, Turbo Debt is a legitimate debt settlement service. They are accredited by the Better Business Bureau (BBB) and work in partnership with National Debt Relief, a well-known and reputable name in the industry. Their goal is to help individuals reduce unsecured debt through negotiation and settlement plans.
Let's look at what actual customers are experiencing:
The Good News:
- Many Turbo Debt reviews on Google and Trustpilot are positive
- Customers report feeling relieved after enrollment
- The consultation process is described as "easy" and "helpful"
- Is Turbo Debt BBB accredited? Yes, they maintain accreditation with the Better Business Bureau
The Plot Twist: Some customers complain about pushy sales tactics and unclear explanations of the process. One reviewer said, "They made it sound like magic, but my credit score dropped 150 points in six months."
Speaking of credit scores, here's the part that might shock you...
Does Turbo Debt Hurt Your Credit?
Here's the brutal reality: Yes, Turbo Debt will hurt your credit score.
Remember Step 4 where they tell you to stop paying? Those missed payments get reported to credit bureaus. Your score will drop, sometimes dramatically.
Real-Life Scenario: Meet Mike, a small business owner from Texas. He enrolled in Turbo Debt with a 680 credit score. Six months later, it had dropped to 520. "Nobody explained how bad it would get," he told us. "But in the end, I saved $23,000 in debt, so it was worth it."
According to the Federal Trade Commission, debt settlement can negatively impact your credit for up to seven years. But here's the twist: if you're already struggling with debt, your credit might already be heading downward anyway.
The Numbers Game: What Turbo Debt Actually Costs
Turbo Debt relief isn't free. Here's how their fees work:
- No upfront costs (that's the good news)
- Fees are typically 15-25% of your enrolled debt amount
- You only pay when they successfully settle a debt
- The average program lasts 24-48 months
Example: If you enroll $40,000 in debt and they charge 20% fees, you'll pay $8,000 in fees. But if they settle your debt for 50% ($20,000), you'd still save $12,000 overall.
Good Read: What Happens to Your Credit Score If You Mismanage Debt
But before you get too excited, there's another option that might surprise you...
Turbo Debt Alternative That Banks Don't Want You to Know
What if I told you there might be better options than Turbo Debt? Here are the alternatives:
- Debt Management Plans (DMPs): Non-profit credit counseling agencies offer these with lower fees and less credit damage.
- Balance Transfer Credit Cards: If your credit is still decent, you might qualify for 0% APR cards.
- DIY Debt Settlement: You can negotiate with creditors yourself and keep 100% of the savings.
- Personal Loans: Sometimes a consolidation loan is cheaper than settlement fees.
Recommended Read: How to Pay Off Credit Card Debt Fast (Even on a Low Income)
But here's the question that's probably eating at you...
Is Turbo Debt Right for YOU? The Ultimate Test
Turbo Debt might be right for you if:
- You owe more than $10,000 in unsecured debt
- You're struggling to make minimum payments
- You're okay with temporary credit score damage
- You want professionals handling the negotiations
- You can afford the monthly program payments
Red flags that Turbo Debt isn't for you:
- You can still make minimum payments comfortably
- You need your credit score for a major purchase soon
- You only owe a few thousand dollars
- You're not ready for the emotional stress of default
Real-Life Scenario: Jennifer, a nurse from California, was drowning in $35,000 of medical debt after her husband's cancer treatment. Traditional payment plans would have taken 15 years. Through Turbo Debt, she settled for $18,000 and was debt-free in 30 months. "The credit hit was scary, but being debt-free was worth every point," she said.
How About “What Is a Turbo Loan?”
Let’s not confuse ourselves here—while both start with “Turbo,” Turbo Debt and a Turbo Loan are two very different things. Turbo Debt is not a lending company. They don’t offer loans. Instead, they help people settle unsecured debt by negotiating with creditors.
On the other hand, a Turbo Loan is typically a fast, short-term loan designed to give you quick access to cash—often within the same day. These are usually offered by online lenders or payday loan companies and are used for emergencies like car repairs, medical bills, or unexpected expenses.
Here’s what you should know about Turbo Loans:
- Quick Approval: They’re known for fast application processes and almost instant approvals.
- Short-Term Use: Most turbo loans are designed to be repaid within a few weeks to a few months.
- High Interest Rates: These loans can be expensive, with high interest rates and fees that add up quickly.
- Emergency Funding: Ideal for urgent, one-time needs, not long-term financial help.
So, just to be clear—Turbo Debt helps reduce what you already owe, while a Turbo Loan gives you new money that you’ll need to repay—usually with steep interest.
Understanding the difference can help you make the right financial move based on your situation.
The Final Verdict: Making Your Decision
Is Turbo Debt a legit company? Yes, but like any debt settlement company, it's not a magic solution. According to CBS News, only about 6% of people who start debt settlement programs actually complete them successfully.
Here's what you need to know:
- Turbo Debt can work, but it's not easy
- Your credit will take a hit
- You'll need discipline and patience
- The emotional stress can be overwhelming
- Success isn't guaranteed
A Better Way than Using Turbo Debt?
Before signing up for a debt settlement program, consider this: you may be able to dispute the debt entirely and have it removed from your credit report—legally.
If a debt is inaccurate, unverified, or outdated, you have the right under the Fair Credit Reporting Act (FCRA) to challenge and remove it. This means:
- No need to pay the debt
- No damage to your credit score
- No long, stressful settlement process
For many, debt validation and credit repair can be a smarter first step—offering real relief without the lasting credit damage. So before you commit to settling, explore your options. You might not have to pay at all.
The Bottom Line: Your Next Move
Before you call Turbo Debt, consider these steps:
- Talk to a non-profit credit counselor first (many are free)
- Calculate if you can afford the program payments
- Understand the credit score impact
- Have realistic expectations about timeline and results
- Consider if bankruptcy might be better for your situation
Remember Sarah from the beginning? She ended up choosing a debt management plan instead of Turbo Debt and paid off her debt in four years with minimal credit damage. But Mike chose Turbo Debt and cut his debt in half in two years, despite the credit hit.
The truth is: There's no one-size-fits-all solution to debt problems. Turbo Debt works for some people, but it's not magic. It's a business tool with real costs and real consequences.
Your debt story doesn't have to end in disaster. But whatever path you choose, make sure you understand exactly what you're signing up for.
What will your debt success story be?
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. We don’t mean any harm or negative opinion to any other company or brands mentioned. Always consult with qualified professionals before making financial decisions. Individual results may vary.