TurboDebt’s reviews are nearly perfect. Are they too good to be true? Let’s examine.
So, you may have seen ads on TikTok or Snapchat about Turbo Debt. Let’s look at an example. In the TikTok ad below, the individual talks about how you can get out of debt without taking a huge hit on your credit and not having to pay back the debt.
Two things struck me about this Turbo Debt ad that I wanted to share right away. Firstly, the individual states the following:
- You aren’t going to take a huge hit on your credit.
- You aren’t going to have to pay it back.
For those of you who may not be aware of this, Turbo Debt is pitching something called debt settlement (also known as debt relief and debt consolidation programs).
I was the previous CEO of a debt settlement company, and I know that debt settlement can negatively affect your credit. And, in debt settlement, you have to pay back some of the debt. There are actually instances where you may actually pay back more than what is due. Based on our review, a common Freedom Debt Relief complaint is that people didn’t actually save money.
Now, if you are struggling with debt and wondering what to do next, we built a free, unbiased debt options comparison calculator (not even an email address is required) that provides a wide range of debt options that may be able to fit your budget. The data is personalized to your income and expenses, so you can get accurate costs, pros and cons, and options.
Recently, I put together a video covering 8 red flags when considering a debt settlement company. Hopefully, this video will be helpful for yin your research.
Is TurboDebt New?
One of the biggest questions I had is whether TurboDebt is a new company.
For example, as someone who has been in the debt settlement industry, I was surprised that I had never heard of a debt settlement company that had 2000+ 5 star reviews. I mean, National Debt Relief is one of the largest and has 3500 Google reviews but has been around for almost 13 years.
So, researched TurboDebt on Wayback machine, and found that the earliest site crawl with information was on August 5, 2020. That’s less than two years ago. TurboDebt’s Facebook page is slightly older with a creation date of March 24, 2020.
So, TurboDebt appears to be a relatively new organization. Based on this study, there’s a really interesting debt relief review distribution story where Turbo Debt got over 400 Google reviews in one month while National Debt Relief’s biggest month was just over 150 Google Reviews. And just for context, National Debt Relief is one of the largest debt settlement companies in the US. See the picture below.
But, this story gets more interesting, so let’s see whether we can find TurboDebt’s BBB page and try to answer the question of whether its reviews are too good to be true.
Where is TurboDebt’s BBB?
The first thing I like to research is whether a debt settlement company has a BBB page. I believe the accreditation fee for BBB is about $530, so it’s not insignificant, but many debt settlement companies like to show their BBB rating upfront, almost to prove legitimacy.
So, after much review, I could not find a BBB page associated with TurboDebt.
The only BBB page I could find is another business that is a Debt Collection Agency, called Turbo Debt Recovery LLC, which is not the same thing.
So, let’s go through the reviews as this is where it gets more interesting.
Are Its Reviews Legitimate? You May be Surprised
I believe the reviews are legitimate, but there’s something to know.
The first thing that is interesting is that when you Google, “Turbodebt reviews”, you may only see the debt collection agency above.
To find the reviews, you may actually have to do more digging. At the time of this writing, TurboDebt has a 4.9 rating based on 2242 Google reviews, 3.9 rating on TrustPilot, and a 4.7 rating on Facebook.
Turbo Debt Google Reviews Closer Look
Let’s take a closer look at the Google reviews.
The first thing I recommend doing with Google reviews is to sort by 1 star descending to see the most negative reviews.
This is where it gets interesting. The top negative review specifies another debt settlement company experience, Beyond Finance. I included a piece of the review below.
That’s not the only one. There’s another review where Alicia is thanking Raymond to help set everything up with National Debt Relief.
National Debt Relief is one of the biggest debt relief companies in the United States. And while it does settle debt, many people have had negative experiences. Check out how common this search term is, “National Debt Relief Screwed Me” based on Google’s Keywords Planner (which shows the estimated search volume per month). The link above is to the article where we cover that in detail.
Basically, the image shows that there’s been a 140% year-over-year growth in people searching for that term.
So, while the reviews appear to be legitimate, my hypothesis is that TurboDebt requests reviews before or RIGHT after you enroll in the debt relief program that they recommend.
Many people feel a weight lifted off their shoulders when they enroll in a debt relief program.
That said, that mood may change when their credit score falls or they face a debt collection lawsuit.
How Much Does Turbo Debt Cost?
At Ascend, we believe that debt settlement may be a good option, but it’s only in the context of understanding all of your options and understanding the cost of that option. This is exactly why we built a free debt relief cost comparison calculator so that you are MOST informed.
So, what is the cost of TurboDebt?
If TurboDebt refers its leads to other debt relief providers, we can look at the other debt relief provider’s fees to understand the true cost. I’m going to share why I don’t like how fees are stated shortly.
- If you look at the bottom of Beyond Finance’s home page, it states their fees range from “range from 15%-25% of your enrolled debt.”
- National Debt Relief is a bit more forthcoming with this information at the bottom of its home page, “Clients who are able to stay with the program and get all their debt settled realize approximate savings of 46% before fees, or 25% including our fees, over 24 to 48 months.” Doing a little math, you can see that they are estimating 21% of fees.
Now, 15-25% is a huge range, and I would expect that most people will see fees between 21-25% for these companies.
These fees are quite high compared to the small handful of companies that we refer folks to that are in the 15-17% range.
Just for reference, a lower fee can save you THOUSANDS of dollars and get you out of debt faster.
Would I use Turbo Debt based on the reviews?
Personally, I am not sure whether I would use TurboDebt for the following reasons:
- The ad on TikTok wasn’t forthcoming about the credit score drop or the fact that you may have to pay some of the debt back.
- It appears that TurboDebt refers out traffic to debt settlement providers that may charge high fees.
While Beyond Finance and National Debt Relief are major players who do settle debt, I generally look for companies that have amazing reviews and the lowest costs.
Let’s now cover alternatives to TurboDebt.
Let’s cover a few alternatives to TurboDebt and debt settlement. The information is general, but if you want to see personalized cost and duration for your situation, you can find that using our debt options comparison calculator.
Lower Cost Debt Settlement
If you want to do a debt settlement, you can consider finding a lower-cost debt settlement option that will save you money and get you out of debt faster. You can estimate the cost using our calculator above, and you can reach out to us if you’d like more information about our favorite options.
I am already enrolled.
If you are already enrolled with a debt settlement company, you can consider doing consolidation of settlements. Basically, you may have realized that the fees are high and you can consolidate them into another debt settlement company to save money.
It’s a similar concept to a debt consolidation loan where you are consolidating higher-cost debt into a lower-cost debt solution to save money.
Debt management is also known as credit counseling. In a debt management program (DMP), the company would negotiate the interest rates on your high-interest credit card debt.
Debt management companies are often non-profit organizations that charge a monthly fee between $30-$50. Your credit score may not be as negatively affected as debt settlement, and plans are generally 3 or 5 years.
With that said, you may not save as much money with debt management vs debt settlement.
Bankruptcy is often many individual’s last resorts, and for good reason. A Chapter 7 bankruptcy is on your credit report for 10 years, and a Chapter 13 bankruptcy is on your credit report for 7 years. Chapter 7 bankruptcy provides debt relief for around 120 days and Chapter 13 bankruptcy often lasts 3 or 5 years.
That said, Chapter 7 bankruptcy is often the cheapest debt relief option and the quickest. You often have to qualify for Chapter 7, which you can estimate using a Chapter 7 calculator.
Turbo Debt’s reviews show that it may refer its leads to such debt settlement companies as National Debt Relief and Beyond Finance. So, in order to get an actual perspective, you may want to research the company that Turbo Debt refers you to to get the best sense of your experience with debt settlement.
With any debt settlement, it’s important to consider the pros and cons. You should also consider researching the Consumer Finance Protection Bureau’s guidance on debt settlement and lawsuits against debt settlement company providers.