It is startlingly easy to find yourself in debt, no matter who you are or where you can from. Being in the red is actually just a few poor decisions away, and that’s a pretty terrifying thought. This is why smart investing and money management are important skills to learn in life. Of course, emergencies happen every now and then, and that’s where getting bad credit loans will come in handy.
Even if you find yourself in a state of wealth and prosperity, the danger of debt still lurks close by. In order to explain this a bit better, we have gathered several fantastic examples of celebrities who found themselves the victims of vicious debt.
1. Michael Jackson ($400 Million Debt)
At one point in time, Michael Jackson was the name to know in music and entertainment. The man was known as the “King of Pop,” and had millions of fans obsessing over his vocals and lyrics, anxiously awaiting what the singer would release next.
Unfortunately, a tragic set of secrets and severe personal issues would derail the star for good. Following a heartbreaking fall from grace, Jackson found himself up to $400 million in debt. He was one of the most famous celebrities in debt.
In fact, the final tour that Michael Jackson announced shortly before his death was meant to help him claw his way out of that debt. Sadly, the singer passed away before he could take the stage.
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2. Miles Teller ($100,000 Debt)
This story of a celebrity in debt has a pretty happy ending, luckily. While many celebrities fall into the classic trap of “living large,” and going way overboard with their spending, there are some celebs who go in debt like their fellow person typically does.
For Miles Teller, the desire to study acting at New York University was his doorway to debt. The actor took out $100,000 in student loans just to attend the university. As you can imagine, that was a very risky move that could have very well wrecked the young actor for good.
Luckily, he landed his first big break during his senior year of college. While that debt wasn’t magically paid off in a day, he did eventually clear his name of it. Although, that is a sadly rare outcome for many people.
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3. MC Hammer ($33 Million Debt)
Yes, it turned out that debt could touch this. The rapper known as MC Hammer was huge in the early 1990’s, even going so far as to be signed to Capital Records at his peak. In 1991, his hit single U Can’t Touch This dominated the airwaves for months and is still uniquely recognizable today. That amount of success can be hard to handle, unfortunately.
During that year, Hammer’s net worth exploded to $33 million. A fortune that large could loosen many people’s wallets, and it did exactly that with the entertainer. He began spending like crazy.
Purchases included a 40,000-square-foot mansion worth $1 million, as well as an additional $30 million in upgrades for the property. Multiple swimming pools, gold-plated gates, and luxury vehicles of the land, sea, and air variety made the cut, too.
Furthermore, he employed 200 people, resulting in an additional $500,000 per month. He went on to declare bankruptcy in 1996 and reportedly ended up owing $13.7 million in debts.
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4. Nicholas Cage ($14 Million Debt)
Even the highest paid actors can fall victim to overspending. In his prime, Nicholas Cage was reportedly paid around $40 million per year, and held a net worth of $150 million. Yet, this celebrity still managed to find himself in debt to the IRS for $14 million in 2010.
How could he possibly overspend like this, though? Well, he once purchased a private island in the Bahamas for $3 million, as well as two castles. One for $10 million, the other for $2.3 million. At one point he owned 15 homes, including a $25 million waterfront home in California, a countryside estate for $15.7 million, and even a haunted mansion in New Orleans for $3.4 million.
Cage was also known to purchase oddities such as shrunken heads, exotic animals like a pet octopus, and even outbid Leonardo DiCaprio for a literal dinosaur skull once. Said dinosaur skull turned out to be stolen, and was then returned to Mongolian government as a result.
Despite being one of the notorious celebrities in debt, this actor is still worth millions today.
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5. Charlie Sheen ($300,000 Debt)
While this entry may not be the most surprising in the world, it is still a pretty significant story about celebrities in debt. This is due to Charlie Sheen once being the highest-paid actor on network television, which is in no way a small feat.
Sheen was said to be paid $1.8 million per episode of his hit sitcom Two and a Half Men. These incredible payments were slowly chipped away at over time by mortgages, legal fees, and taxes. Overspending also played its part, too, as Sheen owed almost $300,000 on an American Express card alone.
The actor is supposedly still in heavy debt today, but hopefully things will get better for him in time.
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