The Worlds Worst Credit Card Spenders

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 – 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

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14 People have left comments on this post



» Money ReasonsNo Gravatar said: { Apr 13, 2010 - 03:04:47 }

It’s all about balance! Even stars need to maintain a balance!!!

Great guest post!
.-= Money Reasons´s last blog ..Are You Tracking Your Cash Flow? You’d Better Be! =-.

[Reply]

Jesse MichelsenNo Gravatar Reply:

Absolutely, that’s what life’s all about, finding the balance :)

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» EvanNo Gravatar said: { Apr 13, 2010 - 06:04:44 }

Its funny – Kid Rock was on Howard Stern a couple years ago, and in reference to Pam Anderson, said it is REALLY tough to be famous but not rich lol
.-= Evan´s last blog ..What is a Callable CD? and Why Current Callable CDs Don’t Make Sense =-.

[Reply]

Jesse MichelsenNo Gravatar Reply:

Evan, nice one haha, I agree. Being famous puts you in the spotlight every time you make a mistake. I couldn’t imagine having my mistakes slathered all across the news stands, but you can be rich and modest about it. You would think that being in the spotlight all the time, you would be more conscious about your decisions though…

ps Thanks about the header :)

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» EvanNo Gravatar said: { Apr 13, 2010 - 06:04:15 }

Bad ass header by the way
.-= Evan´s last blog ..What is a Callable CD? and Why Current Callable CDs Don’t Make Sense =-.

[Reply]

» AustinNo Gravatar said: { Apr 14, 2010 - 03:04:57 }

There’s been some big names in the media lately who are behind on their taxes. The warped view of reality that stars has fascinates me. They don’t understand how fast money adds up and how quickly even $10 million can go if you live in Hollywood with a I could care less attitude.
.-= Austin´s last blog ..My Curriculum for Money Education in High School =-.

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Jesse MichelsenNo Gravatar Reply:

Ya Austin, Stardom is pretty interesting. Look at all these child stars that have millions at a young age, then end up broke, in trouble or worse. If only they read our blogs, things might have turned out differently :)

The Olsen twins on the other hand are quite good with their money…

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» AmyNo Gravatar said: { Apr 18, 2010 - 03:04:55 }

It’s all about balance! Even stars need to maintain a balance!!!

Great guest post!
.-= Money Reasons´s last blog ..Are You Tracking Your Cash Flow? You’d Better Be! =-.

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Jesse MichelsenNo Gravatar Reply:

Absolutely Amy, no one is above ..nature? haha, thanks for dropping by!

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» FinancialBondage.orgNo Gravatar said: { May 21, 2010 - 02:05:55 }

I hear Lindsay Lohan has lots of credit card debt that she can't repay. $600,000 last I read.

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» jmichelsen said: { May 25, 2010 - 09:05:59 }

That is a crazy number man! Just think, that was probably all clothes, makeup and booze

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