Nic Cage Was $6 Million in Debt -- and Paid It Off. Here's What We Can Learn From Him

It's easy to think of celebrities as being above the worries of us regular folks. But if there's one thing Hollywood has shown us, it's that anyone can have personal finance struggles -- even when they make millions of dollars a year.

Take actor Nicolas Cage. Given the immensity of his career, one might assume he's never had to worry about money. But it turns out Cage had not only gone through his fortune -- he was actually around $6 million in debt.

But it's not for the reasons that the media might want you to think. According to Cage, it wasn't splurging on exotic pets -- or even exotic cars -- that got him into trouble.

"I was over-invested in real estate," he told Sharyn Alfonsi during a 60 minutes interview. "It's not because I spent $80 on an octopus. The real estate market crashed, and I couldn't get out in time."

Refusing to bow to bankruptcy

Facing $6 million in debt, many people would likely start to contemplate filing for bankruptcy. But in Cage's mind, that wasn't really an option: "One thing I wasn't going to do was file for bankruptcy,” he said.

While bankruptcy can be a good tool for people with no other option, it makes perfect sense that Cage would want to avoid it at all costs. The consequences can be brutal -- and long-lasting. You can lose all of your assets, including your home. You may even need to sell off more sentimental valuables, like family jewelry or other heirlooms.

And that's before we talk about the credit problems. A bankruptcy can absolutely destroy your credit score, which makes getting any kind of credit after bankruptcy a giant headache. Even if you manage to get credit to start rebuilding, it can take up to a decade for a bankruptcy to fall off your credit report.

RELATED: Best Credit Cards After Bankruptcy

Any movie in a storm

With bankruptcy off the table, the solution to all of Cage's debt was the same as it would be for anyone else:

• Reduce expenses
• Increase income

He made a number of changes to help lower his expenses, including moving to Las Vegas. Nevada is one of the nine states that don't have state income taxes. This means more of what he made was available to pay off his debt.

Cage also took on more work -- a lot more. And it wasn't always the glamorous blockbusters we're all used to him headlining. But while taking on the occasional B-list movie may have earned him some internet mockery, Cage gets the last laugh. He has paid off all of his creditors and is enjoying being debt free.

For those of us who can't pull in six- or seven-figure movie deals, the road to debt freedom can be much longer. But while Cage may have had more opportunity, it was his determination that arguably saw him through.