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February 26th, 2017 by

It’s so easy to look at the glamour of celebrity lifestyle and think, with all that money, they must have it all figured out. The houses, the cars, the clothes, the exotic vacations… It’s enough to make you throw up in your mouth a little bit. From the envy.

But, take a closer look and you realise that, behind that shiny facade and expensive clothing, is a human being, just like us. And, just like us, more money isn’t always an answer to all our problems. Especially if you still haven’t gotten the basics down with your, um, smaller budget.

We take a look a look at some celebrities who shot to fame and then fell right down into a celebrity-size pile of debt. They ‘made bank’ as the saying goes and then some came close to bankruptcy.

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3 Celebs Who Couldn’t Manage Their Finances, Or Their Financial Advisers

1. Johnny Depp Deep in Debt?

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Depp, of all people, who can transform into, arguably, any character you can imagine, couldn’t turn his own financial situation around. But, his financial adviser made him do it.

Depp, who reportedly can spend $2 million in a month, has found himself in an unsustainable debt situation. He is suing the financial advisory firm he hired in 1999 for $25 million, for “engaging in years of gross mismanagement, self-dealing, and, at times, actual fraud”.

Depp, whose earnings total $650 million, stated in his legal papers that he assumed his advisor “was behaving as a loyal fiduciary and prudent steward of his funds and finances”.

But, Bob Johnson, CEO of the The American College of Financial Services, said of the matter that the relationship between a financial advisor and client has to be one of shared responsibility: “The client must take some responsibility to understand what the financial advisor’s strategy is.”

As the saying goes, the best client is an educated client. The Management Group (TMG) is countersuing for
$560 000 in, allegedly, unpaid commissions and credit card fees. They’ve claimed they repeatedly warned Depp of his extravagant overspending, which includes $300 000 per month on 40 full-time employees and $200 000 per month on private planes.

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2. Kanye West’s ‘Personal’ Debt

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It seems debt can bring even the proudest among us to our knees. As you may recall, West took to Twitter last February, where he revealed his ‘true heart’.

West claimed to be in $53 million debt (but not yet broke). The humility was an ill-fit for the rapper it seems. He reached out to Facebook founder, Mark Zuckerberg, asking him to invest R1 billion in West’s ‘ideas’, as well as Google co-founder Larry Page.

But, it seems the rapper isn’t in serious debt. The $53 million was allegedly his personal investment into his music and exploits into the fashion world. Most of which he lost. Now, he’s seeking other people’s money in order to separate his personal and business funds. He says it best here:

’More money more power’, indeed. Just, wait until you get your money right, okay Kanye? Also, Africa is a continent.

CLICK BELOW to chat to a professional debt counsellor about how to get out of debt in the most affordable way possible!

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3. Toni Braxton’s Love Of Jewels

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The former ‘Queen of R&B’ seems to like jewellery. A lot. The singer, who’s sold 40 million albums worldwide, has filed for bankruptcy. Twice.

In 1998, she filed for bankruptcy the first time after finding herself in $5 million debt. But, in 2010, it seems the lesson had not been learned, as she filed for bankruptcy again. This time, she was 10 times deeper in debt, owing R50 million to, among others, Tiffany & Co and the IRS (somebody wasn’t paying taxes).

During her filing, she was forced to sell off some of her assets, including a Porsche, and her jewellery collection which fetched more than the car.

Braxton is now reportedly worth $10 million thanks to her live shows and celebrity appearances that bring in up to $1 million annually. Seems she can Breathe Again.