Let’s face it: debt can feel like a heavy backpack you’re forced to carry everywhere. If you’ve ever Googled ways to lighten that load, you’ve probably stumbled across Turbo Debt. This debt relief company promises to negotiate with creditors to settle your debts for less than you owe—sounds tempting, right? But before you jump in, let’s unpack how it works, what it costs, and whether it’s the right move for your financial future.

You don’t have to figure this out alone. A debt professional can walk you through your options and help you take the next step—with no cost to get started. Call (602) 691-7570, or schedule your free consultation here.

What Is Turbo Debt?

Turbo Debt is a debt settlement company that specializes in helping people tackle unsecured debts like credit card balances, medical bills, or personal loans. Unlike debt consolidation (which merges debts into one payment) or bankruptcy (a legal last resort), Turbo Debt’s approach is straightforward: they negotiate directly with your creditors to reduce the total amount you owe. The goal? To help you settle debts for a fraction of their original value.

The company boasts an impressive reputation, with an A+ rating from the Better Business Bureau and a 5-star Trustpilot score from over 18,000 reviews. It’s also a certified member of the American Association for Debt Resolution (AADR), which adds a layer of credibility. But here’s the catch: Turbo Debt isn’t available everywhere. States like Wisconsin, Minnesota, and Oregon (among others) restrict its services due to local regulations.

How Turbo Debt Works: The Process Explained

Debt settlement isn’t a magic wand—it’s a structured process with clear steps and trade-offs. Here’s how Turbo Debt operates:

1. Initial Assessment: You’ll start with a quick online survey (about 2 minutes) to outline your debts, income, and financial struggles. This helps Turbo Debt understand your financial situation better, so they can determine how to assist you effectively.
2. Consultation: A Turbo Debt representative contacts you to discuss whether their program fits your specific situation. They’ll assess your needs and explain how their debt settlement process could help reduce your debts.
3. Enrollment: If you decide to sign up, you’ll stop paying creditors directly and instead make monthly deposits into a dedicated trust account. This account is managed by Turbo Debt and is used to fund the negotiations with your creditors.
4. Negotiations: Turbo Debt’s team uses the funds in your trust account to negotiate settlements with creditors. They’ll aim to reduce your outstanding debt by settling for less than what you owe.

For example, if you owe $10,000 on a credit card, Turbo Debt might negotiate it down to $5,400. 

However, keep in mind that their fees (typically 15–25% of your enrolled debt) are also deducted from that trust account.

In this case, you’d pay $5,400 to the creditor plus $2,100 in fees, totaling $7,500—resulting in an overall savings of 25%.

Want to talk with a debt professional about your situation and explore your options? There’s no cost to get started. Call (602) 691-7570, or schedule your free consultation here.

Important Caveats:

• Credit Score Impact: Stopping payments can significantly hurt your credit score, as missed payments will be reported to credit bureaus. This can negatively affect your creditworthiness and may take years to recover from. That said, if you enroll in the Credit Rebuilder Program, you’ll learn how to rebuild your credit score in as fast as six months.  No Guarantees: Creditors aren’t required to settle, and some may choose to escalate the situation by pursuing collections or filing lawsuits. This means there is no certainty that a settlement will be reached.
• Time Frame: Settlements typically take between 24 to 48 months to complete, which requires a significant amount of patience and discipline. During this time, it’s important to stay committed to the process.

The Pros and Cons of Choosing Turbo Debt

Like any financial tool, Turbo Debt has upsides and risks. Let’s weigh them:

The Benefits

• Potential Savings: The company claims clients save ~46% before fees (or 25% after fees) on average. For someone struggling with $30,000 in debt, this could translate to $15,000 in savings before fees.
• Simplified Payments: Instead of juggling multiple bills, you make one monthly deposit to your trust account.
• Expert Negotiations: Turbo Debt handles stressful creditor talks, which is a relief if you’re unfamiliar with debt laws.

The Risks

• Credit Score Drop: Missed payments can linger on your credit report for 7 years, but we can teach you how to rebuild your credit score in just six months.
• Fees Add Up: A 21% fee on a $10,000 debt (like our earlier example) means $2,100 is deducted before you see any savings.
• Legal and Tax Risks: Settled debt may be taxed as income, and creditors could sue before a deal is reached.

Who’s It For?

Turbo Debt is most suitable for individuals who have over $10,000 in unsecured debt, are already falling behind on payments, and are comfortable with a multi-year process that may result in setbacks to their credit score.

Alternatives to Turbo Debt: Exploring Your Options

Debt settlement isn’t your only lifeline. Here are two alternatives to consider:

1. Bankruptcy 

A lot of people think bankruptcy is a dirty word, but it isn’t. Bankruptcy isn’t for everyone, but for the right person, it is a safe, legal option for moving past debt quickly so that you can start to build wealth. Think of it like this: When you are in debt, none of your money really belongs to you because you have to turn over every dollar you earn to a creditor. By declaring bankruptcy, you end the cycle so that you can start living life, going on vacations, investing in your future, or starting a business.

The con of bankruptcy is that it stays on your credit report for ten years, but this “con” shouldn’t necessarily be a deal-breaker. We enroll all our debtor-education clients for free in 7 Steps to a 720 Credit Score, which teaches you how to rebuild your credit score just 12 to 24 months after your Chapter 7 bankruptcy is discharged or your Chapter 13 bankruptcy is confirmed. And for those who want to rebuild their credit even faster, we offer the Credit Rebuilder Program, which will help you see results just 12 to 24 months post-discharged/confirmation. 

2. Debt Consolidation

This involves taking out a new loan (e.g., a personal loan or balance-transfer credit card) to pay off existing debts. Pros? One payment and potentially lower interest. Cons? You’ll need good credit to qualify for the best rates.

How to Decide:

• Assess your debt type: Turbo Debt focuses on unsecured debt. For secured debts (like mortgages), consider other strategies.
• Calculate costs: Compare Turbo Debt’s fees to interest savings from consolidation.

Talk to a pro: A debt professional can help you weigh risks specific to your situation. Call (602) 691-7570, or schedule a free consultation with a debt professional, to discuss your options.

The Bottom Line

Turbo Debt offers a viable path out of debt for those willing to accept short-term credit damage and fees. While the potential savings are real, the trade-offs are serious. Before enrolling, research alternatives, crunch the numbers, and ask yourself: Can I handle the risks if negotiations fall through?

Remember, there’s no one-size-fits-all solution. Whether you choose Turbo Debt, bankruptcy, or another route, the key is to take action—before that financial backpack gets any heavier