Celebrities in Debt: What We Can Learn From Their Mistakes
Though celebrities certainly have the talent to make a great deal of money, some of them lack the knowledge that is needed to keep a hold of it.
Whether it’s making poor purchasing decisions or not being aware of their financial limits, celebrities are just as prone to falling into debt as the average person.
Here’s a look at some major celebrities who you would think have tons of money in the bank, but alas, are facing some serious financial hardship.
Jonathan and Drew Scott
Better known as The Property Brothers, the Jonathan and Drew Scott endured some serious financial struggles before making it big on their famed HGTV hit show. Though their combined net worth is now in the millions, it wasn’t always that way for the twins. Jonathan ended up going into serious debt while trying to attain his dream of becoming a magician, and as a result, he ended up filing for bankruptcy. Drew longed to be an actor and accumulated a whopping $100,000 in debt while trying to pursue his vision.
The Scott’s learned a valuable lesson from their adversity, though; they are both keenly aware of their past mistakes and diligently work toward constantly strengthening their financial state. Jonathan admitted that he was embarrassed by his debt and as a result filed for bankruptcy. Reflecting back he wishes he didn’t file and rather paid off his debt over time. There is a lot of misinformation out there that leads people to believe that bankruptcy is the best – or only – option when it comes to resolving financial disaster. And in some cases it is. But it is important to always do your homework before making any major financial decision.
The Property Brothers are an excellent example of how economic hardship can be a valuable lesson and serve as a major motivator to avoid future turmoil.
The former star of countless movies and the wildly popular sitcom Two and a Half Men, Charlie Sheen is another star who has found himself in debt. Despite a networth of $150 million, Sheen is reportedly $12 million in debt. The actor claims that legal fees, taxes, mortgages, and medical expenses are the cause of his financial hardship. As a result, he reportedly had to sell real estate, as well as his profit rights to Two and a Half Men.
The causes of Sheen’s debt are similar to so many other people who also face debt. Mortgages, medical expenses, taxes and child support are all expenses that quickly add up. In order to keep up with such financial commitments, spending needs to be halted; however, Sheen, like a lot of other people in similar situations, likely did not pull the reins on his spending.
A sultry voice helped Toni Braxton, once hailed the “Queen of R&B,” earn a tremendous amount of money. However, she made some seriously poor spending decisions, which landed the singer in some serious financial distress. In 1998, Braxton filed for bankruptcy when she was $5 million in debt, and again in 2010, when she owed an estimated $50 million in back taxes, Neiman Marcus and Tiffany & Co. (among others.) According to reports, she spends an astronomical $2.5 million on cosmetics and clothing in less than two years! With spending habits like that, it’s easy to see how someone who makes millions of dollars a year could end up in debt.If Braxton managed her expenses better, she could have easily avoided financial troubles.
These are just some of the celebrities who have had to deal with debt. They are examples of how, no matter how much money you have, if you spend excessively and don’t plan ahead, financial hardship is unavoidable. If you need assistance with financial planning and want to avoid debt, or you are currently in debt and are looking for a way to get out, contact Tayne Law Group, P.C. Our debt relief lawyers will help you create an effective plan to help you better manage your money so that you can avoid – or get out – debt.