Why 50 Cent Only Has 50 Cents Now?!
When news that rapper 50 Cent filed for bankruptcy hit the newsstands in July 2015, his fans may have scratched their heads in disbelief. How could a multimillionaire file for bankruptcy? However, as details of his situation emerged, it was clear that an excessive lifestyle contributed to 50 Cent's bankruptcy.
What went wrong?
Curtis James Jackson III, better known as 50 Cent, created a lavish lifestyle thanks to his success as an entertainer, business owner, and investor. Unfortunately, his financial stability began to unravel when 50 Cent was ordered by a judge to pay $5 million to a woman over a sex tape. Other debts began to surface, including $50,000 to two women injured at one of his concerts. A judge ordered 50 Cent to pay back nearly $23 million dollars in debts. With over $36 million of debts and only $20 million in assets, 50 Cent had little option but to file for bankruptcy as he reorganized his financials.
Tips for avoiding bankruptcy
It may seem like a wake up call to learn that even multimillionaires can (and do) file for bankruptcy; however,the following preventative measures can help you avoid filing for bankruptcy and turn your financial life around.
- Live within your means: Reevaluate your needs and cut all unnecessary expenses.
- Use cash or debit cards: Unless you can use a credit card and pay it off each month, avoid the temptation and stick with cash.
- Avoid excessive spending: Before you go shopping, consider what is a want versus a need. Purchase "needs" only until debts have been paid.
- Sell assets: Consider selling an asset to pay off the debt.
- Make regular and timely payments
- Negotiate with lenders: A lender may be willing to negotiate with you if they think they'll get paid quicker.
Paying off debt is never easy, but it can be done with hard work, real sacrifice, and ironclad determination.
Let the experts here at Welke Law help you get your financial freedom again!