Bankrupt Billionaires: This Could Happen To You

The laws of financial gravity affect everyone, whether you earn minimum wage or millions of dollars. If you spend more money than you make, and load yourself up on debt, then you are asking for trouble, regardless of the amount of money that you are earning. The website Smart on Money runs a great anecdotal story about Patricia Kluge, the divorced wife of media mogul John Kluge. Apparently, Mrs. Kluge took on gobs of debt to establish a vineyard right before 2008, and when the housing crisis hit, she lost everything, having to file for bankruptcy as her debt payments greatly exceeded the money that she was bringing in. This story is incredibly sad because it was so preventable, but Mrs. Kluge's story is just a larger reflection of the tragedy that faces so many Americans today. When the economy is tough, taking out loans in the hopes of paying it off when a better tomorrow comes is all too easy of a trap to fall into. To read a great profile of Mrs. Kluge's tragic story, be sure to visit the Smart on Money link here: http://www.smartonmoney.com/from-billionaire-to-broke-one-wealthy-heiress-and-her-slide-into-bankruptcy/ .