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Nicolas Cage Credit Report not a National Treasure

By Faye Mergel
Published: Friday, October 23rd, 2009

Financial advisers would tell consumers to idolize anything about Nicolas Cage except his debt management. To start with, he owes the internal revenue service $6.3 million in back taxes for 2007. Additionally, East West Bank is suing him for not paying back the $2 million he owes.

Nicolas Cage Credit Report not a National TreasureDespite being one of Hollywood’s highest paid actors, he still has trouble paying off debts.
It is estimated that he owes a total of $9 million to multiple creditors. Experts say with that much debt, the Con Air star’s credit report is not likely to be considered a national treasure.

As revealed by records, Cage has bought more properties than all Hollywood actors put together. He has real estates in Rhode Island, Louisiana, Nevada, and California, most of which he still owns until today. Back in 2006, he bought a castle called Schloss Neidstein in Bavaria, Germany. But because of debt troubles, he was forced to sell it April this year. While property sale is not a negative item on ones’ credit report, in fact it is not recorded there, it is a sign that Cage is having trouble with his finances.

However, experts say the greatest mistake Cage did for his credit report is not paying the taxes IRS required from him two years ago. They explained that tax liens could stay on a credit report as long as they are not paid. Additionally, being sued for not paying back money that was owed severely damages one’s creditworthiness. Cage is not likely to purchase another castle soon (his finance advisers are most likely to tell him), but experts say his debt standing will matter greatly to him in the long run. They remind consumers that whether a person is a Hollywood star or not, his credit report plays important role in determining interest rates for loans and other forms of debts.

Industry specialists say Cage can still fix his credit report blunder involving the IRS. Since tax liens are already placed on all his properties, he is most likely to pay Uncle Sam what he owes. So if he decides to sell any of his properties, IRS will collect some money from the proceeds. This will continue until the agency gets fully paid. Only then will Cage’s credit report be freed from tax liens, specialists add.

With many stars such as Jodie Sweetin, Annie Leibovitz, and Ed McAhon either filing foreclosure or bankruptcy, experts say it is not hard to see why prudent debt management is very crucial no matter how hefty a person’s purse is.

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