Shannon Sharpe was shocked by NFL legend Adrian Peterson's debt woes and legal troubles — what you can learn
Former Minnesota Vikings star running back Adrian Peterson has been ordered by a judge in Houston to turn over numerous personal assets to help repay an estimated $12 million-plus in debt, according to USA Today.
Surprisingly, the NFL legend finds himself unable to pay back lenders despite being one of the highest paid running backs of all time during his illustrious career from 2007 to 2021.
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“AP, bro, you made $100 million,” a shocked Shannon Sharpe said during an episode of sports talk podcast “Nightcap” on Sept. 15, referring to Peterson’s career earnings as a player.
Hall-of-famer Sharpe suggested to co-host and fellow NFLer Chad “Ochocinco” Johnson that a key reason for Peterson’s unfortunate situation may have been reckless spending habits. Sharpe referenced an extravagant 30th birthday party hosted by Peterson in 2015 that reportedly featured camels, lemurs, belly dancers and a palace-shaped cake.
“Dude thought he was Tarzan for real!” Sharpe exclaimed.
Peterson’s financial woes offer key lessons for ordinary savers and investors.
You can't outearn bad spending habits
Boosting income is generally considered a silver bullet for money problems. However, Peterson’s experience puts a spotlight on the fact that bad spending habits can outweigh even nine figures in total earnings.
This may be why many high-income families across America find themselves in financial stress. According to data from PYMNTS, 48% of Americans who earn over $100,000 a year reported they were living paycheck-to-paycheck. For those earning over $200,000 a year, the proportion was only slightly better at 36%.
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A $200,000-plus salary should be sufficient to live comfortably in most parts of the country. However, some consumers feel pressured to overspend. More than half (51%) of Americans admitted they’ve overspent just to impress others, while 56% of this cohort said this need to impress people pushed them into debt, according to a survey commissioned by LendingTree.
By controlling your spending and living within your means, you could avoid this vicious cycle of lifestyle inflation fueled by social pressure.
Bad debt can rapidly escalate
Adrian Peterson’s story isn’t just about his apparent frivolous spending on belly dancers and camel rides, it’s also about the dangers of bad debt.
Court documents viewed by USA Today revealed that Peterson took a $5.2 million loan from a lending company in Pennsylvania in 2016. Prohibitive interest rates and legal fees have helped that initial loan balloon into a total liability of $12.5 million. In other words, the NFL star could have probably saved millions by settling this matter years ago.
Ordinary Americans can’t access multimillion-dollar loans from specialized financiers, but their spending habits can be just as reckless. As of 2023, 23 million Americans had an unsecured personal loan with an average outstanding balance of $11,500 and average interest rate of 11.48%, according to an analysis by MarketWatch Guides.
Meanwhile, household credit card debt ballooned to $1.14 trillion in the second quarter of 2024, according to the Federal Reserve Bank of New York. As of August, the average interest rate on a credit card is 21.76%, per the St. Louis Fed.
Paying off these expensive loans and credit cards to get rid of the burden of a monthly payment could help stabilize your finances and put you on the path to wealth accumulation rather than destruction.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.