7 Millionaires Who Lost It All, but Came Back
Even the richest of the rich aren’t immune from sudden — and complete — plunges in net worth. The big names we’ve rounded up here, from Elton John to Dorothy Hamill, all filed for bankruptcy at one point, falling into the same money-draining traps that can cost us all. However, they’ve managed to rebuild their professional and financial lives. Here’s how they did it.
Is college even worth it?
You should all probably read Newsweek’s latest cover story, on the rising costs (and much-debated value) of a college education. A sample:
Promotional literature for colleges and student loans often speaks of debt as an “investment in yourself.” But an investment is supposed to generate income to pay off the loans. More than half of all recent graduates are unemployed or in jobs that do not require a degree, and the amount of student-loan debt carried by households has more than quintupled since 1999. These graduates were told that a diploma was all they needed to succeed, but it won’t even get them out of the spare bedroom at Mom and Dad’s. For many, the most tangible result of their four years is the loan payments, which now average hundreds of dollars a month on loan balances in the tens of thousands.
More on Daily Beast.
Student Loans Kill: The Student Loans Kill Petition: SIGN IT AND PASS IT ON!
If you’re struggling to pay credit card debt, car loans or even gambling debt, you can wipe the slate clean in bankruptcy. Struggling to pay your student loans? Sorry, you’ll just have to figure that one out on your own...
This has been pinned to the top of our Tumblr feed all day, and I’m wondering what readers think. Student debt is crippling, sure. But isn’t there something to be said for avoiding that kind of debt in the first place? Very curious if you have opinions on this.
The full petition, for background, is here.
What’s next in the federal debt crisis — and how will it hurt the economy this time?
Look for lawmakers to agree to a short-term expansion of the federal debt ceiling and to defer negotiation of budget cuts until 2013 … The damage would be too great otherwise — knocking four percentage points from 2013 GDP and sending the economy into another recession. But even worry about the possibility hurts.
There are signs, for example, that businesses want to hire more, but won’t. Companies are instead extending the workweek, hiring temps and adding part-timers. Consumer confidence is falling again, sinking back to near-recession levels. Consumer spending growth for the year isn’t likely to top 2% and may slip even lower.
All told, the angst may steal up to a full point from second-half growth.
From the July 1971 issue. Still relevant!
"It's a financial win for students, no question, but don't get out the party hats and confetti quite yet."
Last week, Congress passed a measure to freeze the interest rate on student loans. But what, exactly, does that mean for borrowers? (Spoiler: It’s not as great a deal as you think.)
BANKRUPT USA
A numerical look at the average family’s financial struggles:$126,400
Net worth of the median American family in 2007$77,300
Net worth of the median family in 201040
Percentage drop in wealth over that three-year period15.2
Median percentage of debt that was education-related in 200719.2
Median percentage of education-related debt in 20107
Percentage of Americans late on their debt payments in 200711
Percentage late on payments in 2010
