TurboDebt vs Freedom Debt Relief: Which Is Better

TurboDebt and Freedom Debt Relief are both well-known debt relief companies that specialize in debt settlement. If you have a lot of unsecured debts and are finding it difficult to keep up with the monthly payments, these companies can help you settle your debts for less and ease your financial stress.

In this TurboDebt vs Freedom Debt Relief guide, we’ll compare the debt resolution programs they offer, costs, and customer ratings to see which one may be the right choice for your financial needs.

What Is TurboDebt?

TurboDebt is a Florida-based company that specializes in debt settlement. If you have $10,000 or more in credit card debt, personal loans, medical bills, private student loans, payday loans, or other unsecured debt, TurboDebt can negotiate with your lenders to lower your debt amount.

TurboDebt’s clients were able to save 54.19% on average before fees in 2023. With half of your debt wiped off your account(s), you may be able to pay it off faster and become debt-free in as little as 24-48 months.

When you get in touch with TurboDebt, a qualified debt counselor will analyze your financial situation to determine which debt relief program is best for you. You can then choose to enroll your debts in a debt settlement program. The TurboDebt team will negotiate with your lenders while you start saving for a one-time lump sum payment you will make to your lenders to settle your accounts in full.

Who Is TurboDebt Best For?

With an average of 54.19% in savings before fees, TurboDebt is best for those who want to maximize their savings. TurboDebt is best for those who have $10,000 or more in unsecured debts.

What Is Freedom Debt Relief?

Freedom Debt Relief also offers debt settlement services to help borrowers settle their unsecured debts for less. If you have unsecured debts, you can enroll them in the program.

The process starts with a free consultation. Once you enroll your debts in the program, a debt negotiator will work with your creditors to get them to agree to accept a lump-sum payment that is substantially lower than the amount of debt you owe. You’ll need to stop making payments to your lenders and begin depositing money in a separate savings account each month so you can save money for the settlement amount the company has negotiated for you.

Once you’ve saved enough money, you’ll make your one-time lump sum payment to your lenders. The lender will then report the debt(s) to the credit bureaus as settled in full.

Who Is Freedom Debt Relief Best For?

Freedom Debt Relief is best for those with lower debt amounts. The company’s minimum debt requirement is $7,500, which is lower than some debt settlement companies'.

Pros and Cons of TurboDebt

While working with TurboDebt can save you considerable money, there are a few potential drawbacks you should be aware of.

Pros

• Free consultations
• A+ rating with the Better Business Bureau (BBB) and thousands of 5-star reviews on Trustpilot
• Average savings of 54.19% before fees
• Available in almost all states and territories
• You may be able to pay off debts in as little as 24-48 months

Cons

• You’ll pay 15% to 25% as a settlement fee
• Secured debts (like automobile and mortgage loans) and tax debts are not eligible for the program
• You may owe federal (and any applicable state) income taxes on the portion of your settled debt that is waived or forgiven

Pros and Cons of Freedom Debt Relief

Freedom Debt Relief has over two decades of experience. However, it's important to be aware of the cons before you sign up for the program.

Pros

• Free consultations
• No upfront fees
• A+ rating on the Better Business Bureau’s (the BBB’s) website
• Lower minimum debt requirement than other debt relief firms
• Offers a guarantee for its debt settlement program

Cons

• You’ll pay up to 25% of the debt you enroll in their program as a settlement fee
• It has a history of lawsuits and regulatory actions
• You may owe federal (and any applicable state) income taxes on the portion of your settled debt that is waived or forgiven

TurboDebt vs. Freedom Debt Relief: Key Differences

The best way to determine which company is right for you is by comparing TurboDebt vs. Freedom Debt Relief to understand the key differences between the two.  

Services

TurboDebt and Freedom Debt Relief offer similar debt relief services. Both companies provide debt settlement. This may be a good option if you have medical debt, private student loan debt, personal loans, debt collection accounts, a bad credit score, and/or a recent history of recurrent late fees.

Keep in mind that if you’re struggling with repayment of secured debt, such as auto loans, mortgages, secured personal loans, or tax debt with the IRS, debt settlement, in general, will not be the right option because creditors will not approve or even consider settlement offers for these kinds of debts.

If you have good credit and are current on your accounts, other debt-relief options may be better for you, such as nonprofit credit counseling, debt management plans, debt consolidation loans, balance transfer credit cards, and Chapter 7 or Chapter 13 bankruptcy.

Fees and Costs

TurboDebt and Freedom Debt Relief also have a similar fee structure of 15% to 25%. This is the average settlement fee that most companies in the industry charge. You’ll only pay this fee once your settlement is authorized and accepted by you and your lender(s). The fee percentage for both companies is based on the amount of debt you enroll in the program.

Keep in mind that fees may vary based on your total debt, your state of residence, and other factors.

Eligibility Requirements

You’ll need $10,000 or more in unsecured debts to enroll in TurboDebt’s debt settlement program. Freedom Debt Relief has a lower minimum debt threshold of $7,500. Your credit score is not a factor to qualify for debt settlement. Only the amount and type of debt you have matters when it comes to debt settlement as a form of debt relief.

Customer Reviews

TurboDebt has an A+ rating on the Better Business Bureau (BBB) and 4.93/5 stars from 1,292 reviews as of August 2024.

TurboDebt also has 4.95/5 stars from 11,188 reviews on Trustpilot. The large number of positive reviews on both platforms is due to the company’s professional services, prompt responses to customers, and excellent results from the settlement programs.

Freedom Debt Relief has an A+ rating on BBB and 4.48/5 stars from 1,929 reviews as of August 2024.

It also has 4.6/5 stars from 43,690 reviews on Trustpilot. When comparing the two options, Freedom Debt Relief has more reviews on Trustpilot, but TurboDebt has a higher average rating with Trustpilot and on the BBB’s website.

TurboDebt vs. Freedom Debt Relief: Which One Should You Choose?

TurboDebt and Freedom Debt Relief are both well-known for helping clients settle their debts for less. Both companies have a similar fee structure, but TurboDebt may be a better choice if you have a larger debt load.

The two companies also have a large number of positive customer reviews on websites like BBB and Trustpilot, but TurboDebt has a higher average rating on both. We recommend setting up a free consultation appointment with both companies to understand how they work and which one may be a better option for your financial situation.

We also recommend comparing TurboDebt and Freedom Debt Relief with other companies, such as Accredited Debt Relief, New Era Debt Solutions, and National Debt Relief, to find the best debt relief company for your needs.