Finances are always hard to manage, especially when it comes in too much abundance. We tend to take it for granted thinking that we can never run out of it. For those who behave this way, take these celebrities as examples that no matter how much we own, we can always end up incurring debts if we mismanage our hard earned funds.
The world was surprised when Kanye West became one of the celebrities who admitted into having major debt. The rapper tweeted last February 2016 that he was already in a $53-million personal debt. He blames this on his failed attempt to break into the fashion world.
But there was hope for him since we all know how good of a businesswoman his wife, Kim Kardashian is. His clothing brand, Yeezy has also been making a good name in the fashion industry.
Mismanagement is not the only reason for incurring debts but also health reasons and that’s what exactly happened to the singer Toni Braxton. She is battling with lupus which made her spend days in the hospital. Bills and treatment facility charges got so out of hand that she had to apply twice for bankruptcy protection. The first was in 1998 and the second was filed on 2010. Her personal debt is estimated to be higher than $50 million and she owes money to companies like AT&T and Tiffany and the Four Seasons.
Good thing for Braxton as she managed to pick herself up and managed to earn between $750,000 to $1 million from her shows and appearances. Good on you girl!
Bankruptcy is an emotional ride especially for those who are surrounded by successful siblings. This is exactly what happened to the actor Stephen Baldwin, the youngest of the Baldwin brothers Alec, Billy, and Daniel. In 2009, the actor was in a $2-million debt which included a credit card bill that summed up to $70,000. His home got foreclosed by the bank as well. In 2012, the money drama continued as he was facing charges levied by the New York state for income tax evasion. Good thing he had good lawyers who saved him from serving jail time.
We all know Tyson as the youngest boxer in history to win the heavyweight belt. All throughout his career, Tyson managed to accumulate $400 million from his career and brand endorsements. Though the money may seem like a good amount to make a person survive five eternities, it wasn’t enough for the luxurious man.
According to New York Times, Tyson’s filing of Chapter 11 bankruptcy was due to his expensive purchases from jewelry to mansions. He was also facing divorce, criminal charges, and lawsuits that also drained his wealth. Despite this, Tyson still purchased a $2.5-million mansion in 20115 in Nevada while his previous home was still on sale at that time.
The limelight has the tendency to blind us from reality and it will make us think that we are invincible and Pamela Anderson became one of its victims. Anderson was once one of the most celebrated feminine symbol as she starred on the hit TV show Baywatch.
In 2009, Anderson encountered many financial problems which included a $1.7 million lien from the IRS for her unpaid taxes. But that wasn’t the end of Anderson’s encounter with the government as she was charged again just two years after that, for the same offense from the IRS and State of California, this time for $370,000. Aside from her run-ins with them, she was also facing a lawsuit from contractors who redid her house which cost $600,000. According to the contractor, Anderson failed to pay them for the service they provided.
Rappers are one of the highest-paid artists in the music industry. They are spotted wearing big chains and cruising in luxurious cars. Before there was Chance the Rapper, Tyga, and Travis Scott, there was 50 Cent. He was one of the most in-demand rappers back in the early 20s. It was easy for him to land million-dollar contracts and endorsements.
In 2015, 50 Cent filed for bankruptcy for his reported debt of $32 million. His debt made his net worth come down from $155 million to only $15 million. Just like other celebs, his debt was due to luxurious overspending and mortgages. the rapper also faced legal battles over a business deal that reportedly cost him $17.2 million. He was also charged with a possession of a private tape that added another $5 million to his growing debts. Since his rough financial times, 50 Cent seems to mellowed down a little bit and we hope he is making sound financial decisions now.