Celebrities make so much money they are able to buy whatever they want. Big houses, luxury cars, and designer clothing become a staple to a celebrity’s spending. Unfortunately, sometimes celebs go overboard and buy a little too much. Here are the celebs that couldn’t control their spending habits, or had other difficulties, and faced some severe financial troubles.
Nicolas Cage was once considered one of the highest-paid actors in Hollywood. But, he somehow got himself in a rather large amount of debt: $14 million. His futile spending was the cause for the problem. Cage bought multiple mansions, castles, yachts and cars. He ended up behind on his mortgage payments which led to multiple foreclosures. His house in New Orleans, worth $6.8 million, was foreclosed. He allegedly owed $5.5 million in mortgage payments and $151,730 to New Orleans in real estate taxes.
Michael Jackson was once named, and still holds the title, in the Guinness Book of World Records, for most successful entertainer. However, his hefty spending habits led him to spend all and more of his fortune. He took out a loan for $25 million to buy in the infamous Neverland Ranch. However, in 2007, he still owed the bank $23 million. He couldn’t make his mortgage payment on the ranch multiple times as well. Unfortunately, bad financial planning lead to him foreclosing the Ranch and filing for bankruptcy. At the time of his death, The King of Pop was $400-500 million in debt.
In 2011, singer R. Kelly was sued by JP Morgan bank for $2.9 million. The bank claimed R. Kelly hadn’t paid his mortgage payments, on his Chicago mansion, in over a year. When R. Kelly bought the house in 1999, he took out a loan for $3.8 million to purchase the $5.2 million house. Unfortunately, due to the real estate crash, the value of his house sank to $3.8 million. He tried to sell in in a short sale for $1.595 million. However, no one wanted to buy it.
Teresa & Joe Giudice
The tumultuous tempered couple, Teresa and Joe Giudice of “The Real Housewives of New Jersey” pled guilty to federal fraud charges. The couple was charged with lying about their income while applying for loans. The pled guilty to bankruptcy fraud and mail fraud amongst other charges. Both Teresa and Joe served time in prison. Their beach house was recently foreclosed and demolished in the beginning of 2017.
Tori Spelling & Dean McDermott
Tori Spelling and Dean McDermott are no strangers to financial issues. However, it recently got worse for them. A judge recently ruled in favor of City National Bank and slapped a default judgement, of $188,000, on the couple. This stems from a December 2016 issue, where the couple had not paid back a $400,000 loan. The Bank is also demanding the $17,000 Tori overdrew from her checking account. If not paid soon, the bank is allowed to start taking ownership of the couple assets.
This American comedian and actor has certainly had some financial issues. He was on the rise in the 90s, when he had roles in “House Party 3,” “Friday,” and “The Fifth Element.” He reached true stardom after appearing in the “Rush Hour” trilogy, with Jackie Chan. He was once considered the highest paid actor in Hollywood, when he received $25 million for his role in “Rush Hour 3.” However, today he now faces foreclosure on his Florida mansion and he has publicly stated he can not afford to pay his bills. He now has a net worth of negative $11.5 million.
Despite being given 25% stake in Nirvana’s assets, frontwoman of Hole, and wife of Kurt Cobain, Courtney Love, still dealt with lots of financial issues. In 2014, she was slapped with a $320,000 tax lien. This was decided after love received a tax bill for over $266,000. The bill included unpaid taxes from 2009 and 2011. That same year she was order to pay fashion designer, Dawn Simorangkir, $96,000, after Simorangkir had sued Love on grounds defamation.
Lena Headey may be a surprise on this list, as she currently stars in the hit TV series “Game of Thrones.” Unfortunately, her money problems are not from unnecessary spending, but from a intense divorce settlement battle. During her marriage she had quit work after giving birth to her first son, Wylie. She said her and her husband “incurred a substantial amount of consumer debt to pay for our living expense during marriage.” She also claimed to only have $5 in her bank account at the time of the divorce. Her husband was asking for much more than that.
Michael Vick’s name is synonymous with 2 things: football and dog fighting. During his time in the NFL, previous to his dog fighting conviction, Vick had earned over $100 million. However, after his conviction, he had to file for Chapter 11 bankruptcy, in 2008. He claimed he owed over $20 million in debt and lost numerous endorsements. However, the Philadelphia Eagles gave Vick a second chance in 2001 and signed him to a $100 million, 6-year, deal. With this money, he was able to pay back much of his debt.
Heidi Montag & Spencer Pratt
After appearing on the “reality” series “The Hills,” Heidi Pratt and Spencer Montag were making more than $2 million per year. However, against professional advice, they squandered away their fortune with unnecessary spending. They bought a full staff of body guards, designer clothing, a crystal collection and dinners with $3,000 bottles of wine. After losing all of their money, the pair moved into Spencer’s parents house, in order to live rent free.
In the late 90’s Brendan Fraser was a huge Hollywood star. He appeared in films such as The Mummy, George of the Jungle, and Monkeybone. However, after many professional expenses (i.e. paying agents, managers, etc.) and a divorce in 2007, Fraser found himself in debt. TMZ reported he owed over $87,000. He had filed documents in order to lower his alimony payments of $50,000 per month. TMZ also reported Fraser “makes about $205,704.04/month, but $112,803.25 goes to professional expenses, leaving him with $92,900.79.”
Born Stanley Kirk Burrell, M.C. Hammer is a hip-hop artist who popularized his famous hammer pants. His famous line “Stop! Hammer time,” and crazy dance moves also made him a memorable music icon. Forbes once reported that Hammer’s net worth was close to $33 million. Unfortunately, it was also reported that due to his luxurious lifestyle and big spending habits he ended up $13 million in debt. He had to declare bankruptcy in 1996.
The actor, director and producer, Burt Reynolds, is best known for appearing in hit films such as Deliverance, The Longest Yard, Smokey and the Bandit and Boogie Nights. In 1988, he married fellow actress Loni Anderson. The couple had one of the longest divorce proceedings in Hollywood history, after a divorce in 1993. Reynolds didn’t finish paying off the money he owed Anderson until 2015, 22 years after the divorce. Reynolds has also released a memoir where he says his marriage to Anderson was “a really dumb move.” After the divorce and a failed restaurant, Reynolds filed for Chapter 11 in 1996.
Multi-Grammy award winning artist, Toni Braxton, has been taking over the R&B charts since the early 90s. Her multiple number one hit songs, such as “You’re Makin’ Me High” and “Un-break My Heart,” along with her incredible voice have made her legendary. However, she may also be known for her financial troubles. Braxton has declared bankruptcy twice. During her first bankruptcy claim, in 2010, she said she owed around $50 million. Strangely, she bought a $3 million mansion in California only 6 months after her 2nd declaration in 2013.
David Adkins, better known by his stage name, Sinbad, is a actor-comedian. He was most popular in the 1990s, after appearing in films such as Necessary Roughness, Jingle All the Way and Good Burger. Since his prime, he has declared bankruptcy twice: in 2009 and in 2013. In 2013, he allegedly owed $11 million, which included $8 million in back taxes. However, he said it wasn’t from unnecessary spending. In 2013, he told Oprah “I didn’t buy Bentleys. I didn’t live large. I invested in me. I invested in a lot of other people. I would not change it; I would not go back.”
Kim Basinger was a Hollywood beauty icon in the 80s, and today is still considered one of the most beautiful women in Hollywood. However, after the decision to break a contract, her path headed towards financial issues. In 1993, she decided she did not want to appear in the film Boxing Helen. Main Line Pictures sued Basinger for $7 million. They were able to settle for $3.8 million. However, this large payment was one of many reasons why Basinger had to declare bankruptcy later in the year. She was developing the town of Braselton, Georgia at the time, and her plans had to be abandoned.
Larry King once hosted CNN’s most watched and longest-running program, Larry King Live. It is hard to believe with so much commercial success he would have had financial problems. However, it was before he became a TV star that he faced his problems. In the 1970s, King had collected $352,000 in debt after his business partner accused him of larceny. King had to filed for bankruptcy in 1978. Luckily, it wasn’t long after that he got his big break on TV.
Throughout his career, Wayne Newton has amassed multiple fitting nicknames such as The Midnight Idol, Mr. Las Vegas and Mr. Entertainment. He was once the king of Las Vegas entertainment, with hit singles such as “Danke Schoen”, “Daddy, Don’t You Walk So Fast” and “Years”. In 1983, the Guinness Book of World Records listed Newton as the highest paid entertainer in the world. Unfortunately, that didn’t last. After accumulating $20 million in debt, he had to filed Chapter 11 bankruptcy protection in 1992.
Dionne Warwick is one of the most-charted female vocalists of all time (she is second to Aretha Franklin). She has 60 singles that made the Billboard 100 from 1962-1998. Sadly, top singles can’t save you from taxes. In 2013, she filed for bankruptcy after amassing $10 million in unpaid taxes. Her publicist released a statement saying “Due to several consecutive years (the late ’80s through the mid-’90s) of negligent and gross financial mismanagement, Dionne Warwick has realized the current necessity to file personal bankruptcy.”
Marvin Lee Aday, better known as Meat Loaf, became an international sensation after releasing the “Bat Out of Hell.” However, it also led to a lawsuit with Sony. He said “At one point I had 100 million dollars’ worth of lawsuits against me, I had to file bankruptcy. It was the only way to get my affairs in order and protect myself.’ However, he has since recovered, mainly due to the success from 1993’s “Back Into Hell” film and tour.
Former supermodel and judge on America’s Next Top Model, Janice Dickinson proved that looks aren’t everything. In 2013, Dickinson reportedly owed over $1 million in debt, much of which was unpaid taxes. She tole RadarOnline “I had some trouble, so yes, it is true … I am upset and taking every step to pay everyone back and I feel terrible about it.” However, she moved on and soon after appeared on Celebrity Big Brother.
Rapper 50 Cent, born Curtis Jackson, found himself in deep debt after a lawsuit with Lavonia Leviston. Leviston claimed Jackson leaked a sex tape of hers in order to embarrass her. The judge ruled in her favor and Jackson was ordered to pay her $6 million. That same year he owed the audio equipment company, Sleek Audio, $17 million. In order to get his finances back in order, Jackson filed for bankruptcy. However, he has since recovered and is set to appear in 2 films to be released in 2018.
Her milkshake brought all the boys to the yard, in 2003. Unfortunately, it did not bring her enough money to sustain her from debt. She found herself slapped with multiple tax liens in several states. She owed a total of $741,027.59 in back taxes to State of New York, the State of California, and the federal government. However, in 2013, she was able to pay off a big chuck of her debt: $400k.
The former boxing champion Mike Tyson was knocked out with debt in the early 2000s. In 2005, he declared bankruptcy after being $23 million in debt. He worked with IRS for many years to come up with a plan to pay his debts. However, in 2014, Tyson said he gave the IRS a hefty check. In return, the IRS excused $2 million off his bill. Tyson said “The IRS was very kind to me the other day…I like the IRS now.”
In the 90’s Natasha Lyonne was at the peak of her career. She appeared in fils such as But I’m a Cheerleader and American Pie. Unfortunately, due to several run-ins with the law and medical problems, Lyonne found herself broke and homeless. Inside Movies reports, “In 2001, [Lyonne] was arrested for a DUI [and] in 2004, she was charged with mischief, trespass, and harassment of a neighbor (and the neighbor’s dog).” These incidents were followed by a 2005 hospitalization “for a variety of ailments, including a collapsed lung and hepatitis C.” Luckily, she’s getting a second shot at her career in the series Orange in the New Black.
Allen Iverson is still considered to be one of the best athletes to play in the NBA. His salary reached up to $20 million per season. However, he was notorious for not making sound financial decisions. He earned over $150 million throughout his career, but was drowning in debt even before his official retirement. However, luckily, in 2001 he had signed an endorsement deal with Reebok. The contract stated Reebok would pay Iverson $800K every year for life, as well as set aside a trust fund of $32 million which he can start utilizing in 2030.
Lady Gaga became an international superstar after releasing her debut album “The Fame”, in 2008. She quickly went on tour in 2009. She played to millions of sold out crowds. Unfortunately, during this time, she has revealed, she was also broke. She told Entertainment Tonight, “I had $3 million dollars in the bank to my name and I threw it all in to make my stage, so I was bankrupt during the show.” However, her plan was to get the attention of the entertainment group, Live Nation, and she did.
Robert Downey Jr.
Iron Man, Robert Downey Jr., was once known for the juvenile decisions he used to make. He had gotten in trouble with the law and was addicted to drugs. However, all of his issues also lead to financial problems. The IRS had placed several liens on his assets. However, the last one, for $495,229, was removed in December 2007. He has since become sober and is making the best of his career (which includes a huge acting salary).
In 2011, Julia Stiles found her self in a temporary, financial crisis. She was in Cuba volunteering for a charity. She had budgeted her trip and brought just the right amount of cash – or so she thought. The last few days of her trip she realized she had miscalculated her spendings and forgotten about the exit fee at the airport. She had no money and was stranded in Cuba. She said “Cuba is not a place where one can access American banks or use credit cards, so if you run out of cash you cannot get anything. You can’t even get off the island.” Luckily, she was able to borrow money from someone and get back to the U.S.
Jon Gosselin rose to fame on the reality series Jon & Kate Plus 8. Unfortunately, the fame also lead to the demise of his marriage to Kate. His wife Kate moved on and continued the reality series that is now called Kate Plus 8. However, Jon wasn’t so lucky. During an appearance on The Steve Harvey Show Jon said “I lost all my money. I lost everything. The network sided with my ex-wife.” He now is working as a DJ to make ends meet.