I read that when Michael Jackson died, he was $500 million in debt. How does someone get into that kind of debt?

Question

I read that when Michael Jackson died, he was $500 million in debt. How does someone get into that kind of debt?

In: Economics

Answer 1

Buying a lot of stuff they can’t afford; 

Having money and managing money are two different skill sets.

When the assumption is personX will always make more money next album/tour/movie/deal people are willing to extend a lot of debt