Today I’ve got a pretty interesting guest post here from the writers at BestCreditCards.com.au, a place to compare different credit cards.
We’ve all succumbed to a credit card splurge and been caught up in the excitement of a shopping spree, a sale or a remedy for a bad day at work. However, this excitement is usually quickly followed by months of repaying those purchases to avoid as much credit card interest as possible, but just think about how you would handle credit card debt on the scale of the top five worst credit card spenders:
1. Ed McMahon
Ed McMahon was a US comedian, game show host and announcer who died in June 2009, deeply in debt. Even celebrities can have communication issues in a relationship and this is evidenced by the $750,000 in credit card debt allegedly accrued by McMahon’s wife Pamela. Spending more than you earn doesn’t make any more sense when you’re a celebrity than it does to you or me, and when you are hundreds of thousands of dollars in debt as the McMahons were, you can expect some angry calls from your creditors. In fact, Citi sued for over $179,000 of the McMahon’s credit card debt for damages.
2. Kim Kardashian
A more recent inhabitant of the spotlight is stylish Kim Kardashian who didn’t build up a nasty balance on her own credit card, but on her client’s. Kardashian was hired by R&B singer Brandy Norwood and Norwood’s mother gave Kardashian her American Express credit card, with permission to make one purchase. Reportedly, Kardashian made her one purchase and then handed the card over to her sisters to spend on too, accumulating over $120,000 in credit card debt.
3. Tori Spelling
The daughter of Hollywood royalty should have been more clued in to the temptations and trepidations of a life of fame, however, after Beverley Hill 90210 went off the air, Spelling accumulated hundreds of thousands of dollars in credit card debt. Spelling had gotten used to spending up big as the star of a hit TV show, and couldn’t curb the habit when the money stopped coming in. Tori had apparently learned something by that time though, as she went out and got another job, and paid off her debt without the help of her family fortune.
4. Stephen Baldwin
Stephen Baldwin and his wife have struggled with debt to the extent that they had to file for a Chapter 11 bankruptcy for a total of $2.3 million of debt. On top of back taxes owed to the government, Baldwin and his wife were also struggling with $70,000 of credit card debt.
5. Britney Spear
Just as she seems to be getting back on track, Britney Spears derails herself again; for a star who earns an average of $737,000 a month, Spears has her finances closely managed because she cannot stay in control of her costs, her obligations to her children or even her everyday spending. Spears has a credit card with just a $1,500 daily limit, however in January 2010 she had obviously exceeded the limit of her own card when she used the credit card of her body guard. Spears used her body guard’s credit card to buy several pairs of boots, and talked her way out of a credit card fraud situation when the signatures didn’t match.
Why Celebrities Are The Worst Credit Card Spenders
You probably watch the red carpet and read the glossy magazines, lusting after the lifestyles of those glamorous individuals before you. However, you now realize the abuse they are constantly inflicting on their credit cards and their bad debt balances every day, just to maintain that lifestyle. When you live in such a glamorous world, the pressure to remain equally as glamorous is tremendous, but most of the time celebrities are lucky enough to have large pay checks to cover their equally large credit card balances.
However, in reality, a celebrity’s job can be just as insecure as yours â€“ their show could be canceled, their movie could be a flop, or they could be injured and unable to work. Therefore, rather than idolizing the celebrities who have the most expensive red carpet gown or the biggest Hollywood mansion, look more closely at the reality of their expenses and how tenuous their glamorous lifestyle really is.
Author Fred is personal finance writer specializing in credit card comparison. He helps people to compare credit cards online
Image by bbaunach
Tags: american express, american express credit card, beverley hill 90210, brandy norwood, communication issues, credit card debt, credit card interest, ed mcmahon, game show host, hollywood royalty, inhabitant, kim kardashian, mcmahons, shopping spree, spenders, splurge, tori spelling, trepidations