Posted: March 8th, 2011 | Author: Joe | Filed under: Debt | Tags: celebrity, foreclosure, JaMarcus Russell | No Comments »
I don’t know if this is a sign of the times, or more just a commentary about how money alone does not solve problems, but JaMarcus Russell is facing foreclosure on his $2.4 million mansion.
According to TMZ:
” If he doesn’t pay the $195,512.05 he owes in the next three months, he’ll lose the house.”
This is a guy who signed a $32 million guaranteed contract in 2007, and now he’s broke? Well, he’s behind on his mortgage payments. The article doesn’t say he’s going bankrupt. So he either cannot afford his lifestyle, or he’s choosing to walk away from his mortgage obligation. One is the result of poor financial skills, while the other is irresponsible.
It’s probably a little bit of each. He could probably cough up enough to pay the mortgage, but he just doesn’t want to. Still, it never ceases to amaze me how celebrities can blow through millions like it’s chump change and squander an opportunity most Americans would do almost anything for.
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Posted: September 25th, 2009 | Author: Joe | Filed under: Debt | Tags: celebrity, Debt, money | 8 Comments »
I stumbled on a news item today that I think illustrates what I was talking about yesterday, when I blogged that money can be a debt magnifier.
From Star Magazine:
“Pamela Anderson used to be the Baywatch babe with the million-dollar body! Now, she owes more than $1.2 million to creditors, including construction companies she stiffed after they remodeled her five-bedroom Malibu Colony home last year! “
The article goes on to talk about how Anderson owes $674,043 to the contractor, as well as $252,360 to California’s Franchise Tax Board in unpaid income tax from 2007. She might even lose her multi-million dollar home.
This just shows that having a lot of money, doesn’t solve your money problems if you don’t know how to manage it in the first place. In this case, being rich and famous was just a fast track to mega debt when Anderson’s poor decisions were amplified by her wealth.
Let this be a reminder that we should get our habits under control before we throw more money into the mix.
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Posted: June 9th, 2008 | Author: Joe | Filed under: Debt | Tags: celebrity, foreclosure, news | 2 Comments »
OK all you real estate investors out there, get your check books ready! World boxing champion Evander Holyfield is the latest celebrity to succumb to foreclosure.
“The home worth an estimated $10 million is set to be auctioned by a bank on July 1.”
Maybe I’m too cynical, but this doesn’t surprise me. I have nothing against Mr. Holyfield. It’s just that celebrities going bankrupt prove a strongly held conviction of mine that money alone is not the answer. Of course, 9 children and child support doesn’t help. 
Many people say, “If only I had more money my problems would be solved.” But this rarely true in reality because without the knowledge of how to manage that money, it only makes things worse. Money is like a magnifying glass and only serves to amplify the underlying behavior toward money. If you have good money management skills, then more money will likely make you wealthier. If, on the other hand, you have poor or no money management skills then more money will only get you deeper in trouble (debt). Just look at the majority of lottery winners who end up penniless within 10 years of hitting the jackpot.
In another recent story, Ed McMahon talks about possible home foreclosure, Ed McMahon’s wife, Pamela explains:
“Asked why a millionaire couldn’t make house payments, Pamela McMahon said the couple had less money than people may think and suggested they could have done a better job managing their finances.
“We didn’t keep our eye on the ball. We made mistakes,” she said. “It’s embarrassing to say the least, and it’s sad, because you know, Ed’s worked his whole entire life.”"
The game, it would seem, is the same for the rich and middle class alike – keep your eye on the financial ball, and educate your self!
Of course, celebrities can do a funny Nationwide commercial to help get back on their feet again. The average Joe doesn’t have that kind of opportunity.
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