The holidays are over and now it’s time to tackle your daunting debt. Credit card debt is the highest form of debt and right now, Americans carry an average credit card balance of $6,300. If you are looking to shed the debt in 2025, it’s important to understand the relief options available.
That’s what one Valley business owner decided to do when he was faced with his debt problems.
When Greg Lutz was offered the opportunity to purchase his small murder mystery theater, he was thrilled.
“Well, it’s Murder Ink Productions — that I-N-K because we write all our murder mysteries. We’ve been around since 1989,” said Lutz.
Lutz started out as a writer and actor for the company. Lutz said he told the owners that when they were ready to sell, he would be interested in buying the business.
That’s exactly what happened.
“I needed some funds to purchase the murder mystery company that I have. I didn’t have any, so I received in the mail one of those checks for your credit card,” Lutz explained. "[I] bought the company thinking that I would make so much money through that company.”
However, soon after his dream purchase, the pandemic hit, business went from slow to none, and his theater quickly turned into mounting debt.
“I had about $37,000 in debt.“
Lutz said he couldn’t dig himself out of the hole as quickly as he originally thought.
“I don’t feel I was irresponsible, I just wasn’t educated and just had the faith that the money would come in,” explained Lutz.
Forced to live off his credit cards, Lutz said a friend suggested he turn to Money Management International, a nonprofit credit counseling service, for help.
“At first, I thought perhaps this is a predator wanting to take advantage of somebody like me,” Lutz said. “When they got finished negotiating, lowering interest rates, seeing if they could some of the fines and fees, they were able to reduce it by almost half.”
Lutz said through MMI’s program, he is now on track to pay off all his debt in early 2026.
“It was amazing the education that they gave me right off the bat,” exclaimed Lutz. “I’m at about $5,000 that I owe of that original credit.”
Lutz said he didn’t want anything to do with credit anymore until he was out of the woods.
“The lack of education made me feel as though the creditors were on my side, they were giving me credit, they understood me, they were looking out for me, but then you find out, no... they’re out to make money,” explained Lutz.
According to MMI, in Arizona, the demand for credit counseling is up 58% over the last year. The average debt balance is also up —11%.
There are debt relief options to help with your debt solution plan:
Credit card hardship program:
This option may give temporary financial relief. Under a hardship program, the creditor may be willing to reduce interest rates, waive fees, or temporarily suspend your payments.
It is extremely important to understand all the terms and conditions of these types of programs.
Credit consolidation:
Before going to the credit counseling service, Lutz said he considered debt consolidation.
“I was thinking about refinancing my house and taking out a big chunk to pay everything off,” said Lutz.
With this option, you take a new loan, typically with a lower interest rate to pay off multiple existing debts. The goal is to simplify the repayment process and save money on interest rates.
Debt consolidation loans can come from loans that are specifically aimed at consolidating debt. Often, personal loans, home equity loans, or home equity lines of credit (HELOCs) can be used for debt consolidation.
Debt settlement:
This option could involve working with a debt relief company to negotiate a settlement with your creditors on your behalf. This is also known as a debt forgiveness program. The goal is to pay less than the full balance. In many instances, it’s a one-time settlement paid on the account.
Whatever you decide, make sure you protect yourself:
With any option, do your research on the company. Check reviews and the Better Business Bureau for complaints. Be wary if someone tries to pressure you to pay fees upfront or sign up quickly.
Before you sign any agreement, read the contract carefully and make sure you understand all the terms and fees.
It’s important to understand all the debt relief options available to you, so you can regain control over your finances and hopefully your peace.
Money Management International offers debt and credit solutions, the company aims to help people get out of bad debt and credit situations. Debt management plans, credit counseling, debt counseling, debt management plans, and more.
As for Lutz, he said the credit counseling service was the best financial decision he could have made.
“It has helped my finances, my business, and even in personal life, it has made me more organized,” said Lutz.
