6. Wayne Newton
The loss: In 1983, Wayne Newton was listed as the highest-paid entertainer in the Guinness Book of World Records. Less than 10 years later, he filed for Chapter 11 bankruptcy. He was $20 million in debt from a combination of bad investments, big loans and overdue taxes.
The lesson: Even if you have an astronomical income, debt can be a killer. Based on the way mortgage loans play out, people with a debt-to-income ratio higher than 43% have a hard time making their monthly payments. Don’t overextend yourself on debt.
