Britain is obsessed with the cult of celebrity, but even the rich and famous can go broke. These six stars all crashed to Earth...
In 8 Out of 10 Cats on Channel 4 this week, Jimmy Carr asked his guests to name the five things that most annoyed and irritated Brits. The number-one answer was ‘Celebrity Culture’ -- mentioned by nearly half (48%) of those polled. I agree entirely!
The curse of celebrity
My big beef is that celebrities encourage young Brits to pursue a materialistic, unaffordable lifestyle. This can be a major problem for young women trying to imitate the conspicuous consumption of WAGs (Wives and Girlfriends of professional footballers).
In June 2009, the Telegraph warned that ‘Wannabe WAGs’ were creating a surge in personal insolvencies and bankruptcies. In 2008, and for the first time ever, the majority (55%) of young bankrupts were female. The problem was high-spending young women paying for ‘retail therapy’ on credit. Previously, most young bankrupts were male -- and this gender gap continues to widen.
A star is broke
Alas, celebrities are poor role models for life. Indeed, many are financially incompetent. In fact, when their fame dries up, more than a few go bust. Here are six celebs whose lavish lifestyles ended in the bankruptcy courts:
Pop idol goes pop
The music business has ruined many singers and musicians, especially victims of ‘one-hit wonder syndrome’. However, even old hands with dozens of hit records can go bust.
For example, take Sixties teen idol Adam Faith, later turned actor (‘Budgie’) and financial guru. Once worth over £10 million, Faith went bankrupt in 2002 aged 62, after his Money Channel satellite-TV venture flopped in the wake of the dotcom bust. Faith’s businesses had debts of £32 million.
Reality-TV stars get switched off
Last November, I'm A Celebrity winner Joe Swash was declared bankrupt after failing to pay £20,000 of a £120,000 tax bill. The former Eastenders actor was filming in Australia when his case was heard in the High Court. (Apparently, Swash is taking steps to reverse this ruling.)
Former Atomic Kitten and reality-TV star Kerry Katona was declared bankrupt in August 2008, having failed to pay £82,000 of a £417,000 tax bill. In December 2009, Katona received a repossession order for her £1.5 million Cheshire home, thanks to monthly mortgage arrears of £4,000. (To me, the best thing about Katona is the jokes Frankie Boyle makes about her on Mock the Week.)
Chef gets burnt
Celebrity chefs have a great pedigree in the bankruptcy courts, but the most impressive has to be Clarissa Dickson Wright. The co-star of Two Fat Ladies (a former barrister) is no stranger to bankruptcy proceedings, having gone first bust in 1975 (and despite inheriting £2.8 million). Dickson Wright later returned to the bankruptcy courts in 1982 and 2003.
Footballer takes a dive
Many sportsmen have got into financial difficulty, thanks to their enthusiastic appetites for life’s luxuries, coupled with relatively short but high-earning careers.
Top of this list is Northern Ireland and Manchester United legend, the late George Best. Best, widely acknowledged as one of the world’s greatest soccer players, once remarked, “They say I wasted my money. I say 90% went on women, fast cars and booze. It was the rest I wasted.” Best filed for bankruptcy in November 1982, a year after playing his last professional match.
Boxer hits the canvas
Boxers seem especially drawn to bankruptcy. In his career as one of the world’s toughest heavyweights, Mike Tyson earned roughly £195 million. Alas, Iron Mike’s turbulent lifestyle and huge entourage of hangers-on were a massive drain on his wealth. Tyson’s financial knock-out came when he filed for bankruptcy in August 2003.
From paparazzi to penniless
We mere mortals can take comfort (and a degree of schadenfreude) from the fact that even mega-stars can come crashing down to earth.
Again and again, the same crises push celebs into the financial abyss. These include hefty tax demands, problems with alcohol and other substances, and simply over-spending. In summary, the lessons to learn from celebrity bankrupts are:
- Plan ahead for the future, especially if your income is irregular or your career is short-lived.
- Keep plenty of savings to meet unexpected bills.
- Resist the temptation to spend far more than you earn, as this is the road to ruin.
- Watch your vices. As celebrity chef Marco Pierre White warns, “The only true power is self-control.”
- Don’t wait until your finances spiral out of control; tackle your problem before it’s too late.
Check out four ways to pay off your credit card debt
Finally, my collective noun for media stars is a cringe of celebrities. Can you think of one better? Answers below, please!
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