You would think celebrities have it all and then some. Why would anyone capable of pulling in millions for a single movie or song still find themselves faced with debt and bankruptcy concerns?
There have been many reports of bankrupted superstars that owe HUNDREDS of thousands in credit card balances.
Even with their big paychecks, they were still unable to pay off their debts in a timely manner and several ended up being sued for their actions. There are quite a number of famous people who are, uh-hem, poor examples of fiscal responsibility despite their celebrity-style incomes. Certain famous people have built quite a reputation for financial irresponsibility but there are 5 people in particular who just plain stink at handling their personal finances.
There are many reasons why this may be so including (but not limited to):
- Poor financial advice
- No personal financial planning
- Too far removed from their own money situation
- Miscalculated financial security
- Taking position for granted
- Unadulterated stupidity
Missing the Basics
The celebrities who have acquired great wealth, especially in a short period of time, likely have relied on other people’s advice and ideas for handling the money. They did not take the time to personally understand their financial situation and took for granted that cash was unlimited when handed a bunch of top-notch credit cards. Much like a college student running loose with their first credit card, celebrities with the fame and fortune don’t know how to handle the basics. Not that all celebs fall victim to the same issues. Many have wisely invested their wealth and have no problem handling their reasonable credit card debts. Those not personally connected to their money and allow third party interlopers to handle their finances will likely find themselves in trouble at some point. Greed is a powerful thing.
Who’s In Trouble?
1. Lindsay Lohan
Spending her days currently in rehab for a multitude of problems, it has been estimated that Lohan owes well over a half million dollars in credit card debts. After several court appearances and countless other legal troubles, Lohan’s addictions have spiraled out of control. It is unclear if she will ever be able to regain her money-making acting career or if she will remain a tabloid staple due to her impulsive ways. Lohan has many issues to deal with in addition to her credit card debts and without responsible spending know-how and a clear mind, it may take years for her to make a true comeback.
2. Britney Spears
When Britney Spears went off the deep end a few years back, her father stepped in and became her legal conservator to ensure Spears’ business and finances were put back in order. Spears is often photographed by the paparazzi shopping at the high end stores on Rodeo Drive. Prior to the legal restrictions Ms. Spears is still under, it seemed the popstar had all the money she could ever need at the tip of her fingers. However, with her daddy in charge, it is rumored she is now restricted to only a $1500 credit limit each week. While she’s laid low for the last year, there was an incident not long ago where Spears was caught using her bodyguard’s credit card in order to get around the $1500 limit restrictions. A leaked court document revealed Spears a $112,000 balance and surely in her wilder days, the balances were even more ridiculous if such a restriction had been legally imposed on her.
3. Nicholas Cage
One of the biggest movie stars also has one of the biggest financial disasters on record. Cage blames poor accounting skills of his financial advisor for his financial downfall, estimated to be in the millions. He’s had to sell of property including his castle and publicly deal with the fallout. Court documents also show that Cage is responsible for satisfying a credit card account of his ex-wife’s that totals more than $250,000.
4. Ed McMahon
Johnny Carson’s sidekick for years, McMahon made a huge living during his years in the entertainment business. However, the well-liked celebrity wasn’t too handy with his personal finances. Several years back, McMahon reportedly owed upwards of $750,000 on his credit card debts. He was nearing bankruptcy for the estimated eviction from his mansion until Donald Trump stepped in to help. Sadly, McMahon died while still deep in debt including is three quarters of a million dollars in credit card balances still remaining.
5. Tori Spelling
Daughter of daddy Aaron Spelling, a multi-millionaire before his death, Ms. Tori apparently did not learn what it takes to stay in control of her riches. Infamously, when the senior Spelling passed away, he left nearly nothing for his girl. The younger Spelling has reported faced hundreds of thousands of dollars in credit card debts and had no inheritance to rely on for paying off the balances.