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Celebrities Who Emptied Their Big Fat Bank Accounts And Slipped Into Bankruptcy And Debt

It is a common misconception that celebrities’ bank accounts are so loaded with money that they don’t have to worry about bankruptcy or mortgages like us regular people. However, the situation can change quickly, and some celebs had stumbled upon serious money problems. Others even became homeless after filing bankruptcy since they completely neglected to manage their annual income. Let’s have a look at a list of stars who went from luxury lifestyles to high debts until they went broke. You may be in for a shock when you see names that you don’t expect to be here.

R. Kelly – Had To Take Out Mortgage On Illinois Mansion

Robert Sylvester Kelly used to be one of the best-selling international musicians of today. We say “used to be” because R. Kelly now is in a severe money-related dilemma. Not so long ago, he wanted a 20,000-square-foot mansion, so he decided to take out a mortgage for $3.5 million. However, that didn’t go as planned since he was unable to pay his mortgage payments. The mansion was soon up for foreclosure.

Lindsay Lohan – Couldn’t Pay Rent on Time

Lindsay Lohan is most certainly one of the biggest names in Hollywood. Lindsay was in serious financial trouble since she owed more than $600,000 in credit debt which she couldn’t pay on time.  As a result, she was just a step away from being homeless at one point.

Heidi Montag & Spencer Pratt – Thought it Was the End of the World

Heidi Montag and Spencer Pratt are two names widely recognized for their popular MTV reality show, The Hills. The series provided them a significant income, but their wealth management skills weren’t excellent. Believe it or not, they spent all their money due to the Mayan prediction that the world was close to an end. It is hard to imagine that the couple would be influenced by some ancient prophecy, though some celebrities have been known to be rather quirky.

Mike Tyson – Had $50 Million in Mortgages

Mike Tyson is one of the greatest names in the world of boxing. However, the former champ and his private wealth management suffered a great deal as a result of some unwise decisions on his part. Mike Tyson had a mortgage of $50 million which he had to pay. Fortunately, the boxing champion was able to raise the money needed to pay his debts.

Chris Tucker – Accumulated Massive Debt of $11 Million

Chris Tucker is best known for his role in the Rush Hour movies. The first part of the film was released in 1998. At some point, he was Hollywood’s highest-paid actor, so his bank account was overflowing with cash. But that didn’t stop him from owing more than $11 million in taxes either! Fortunately, he sold his two mansions and took a refinance loan. Eventually, he was able to get back on his feet after repaying all his debts.

Lena Headey – Lost Money in Custody Battle

Lena Headey has become more popular than ever for being on the mega-popular TV show, Game of Thrones. It seems way too early for Headey to embark on serious money-related issues, but she applied for a mortgage refinance, which doesn’t necessarily mean that she had overspent. Her finances suffered a blow when she took her ex-husband to court to fight for the custody of her child.

Celebrities In Debt – What Do We Learn From Their Mistakes?

Learning money management would do a world of good to these celebrities, but unfortunately, they were too bad at it, just like you and me. They probably forgot that with lots of money come lots of responsibilities. Lesson for all of us!

If you are bad at managing your finances, you should use a money management app to automate your savings. This way, you will be able to put some money in your bank accounts every month, while also taking care of the monthly expenses. You could also maintain a diary or something if you prefer to write your expenditures down.

If nothing works for you, you should consult a financial expert, and probably hire a personal finance management professional in case there are millions of dollars sitting idle in your bank accounts. High net worth individuals often take this strategy to manage their finances.

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