The couple - who recently rekindled their relationship after separating in April - have squandered their $10 million fortune on renting a $35,000-a-month Malibu home, wasting $3 million on Heidi`s failed music career, six cars, private jets and the blonde beauty-s cosmetic surgery and are now faced with a $2 million tax bill they are unable to pay.
Spencer said: "We were immature, worrying too much about the famous part instead of the actual business part. In hindsight, we shouldn`t have spent any of our money. We should have been low-key and saved.
"We spoke with a bankruptcy attorney and I`ve looked into unemployment cheques."
The pair have been left homeless and are now living in a studio apartment in the grounds of Spencer`s parents` home.
Spencer admitted to Life and Style magazine: "I feel like I`m 14 years old again. My parents are my lifeline."
Heidi added: "Spencer`s parents go to the grocery store for us once a week and that`s all we get."
Heidi admitted she even considered stripping for Playboy magazine before her husband`s parents gave them somewhere to live.
She said: "At our lowest point, I considered posing for nude pictures in Playboy."
The pair blame their downturn in fortunes due the their reality TV show `The Hills` suddenly being cancelled after four seasons, with the final series being shortened from 20 episodes to 10.
Spencer explained: "We thought `The Hills` was going to be like `90210` and we`d have another five to 10 years.
"The ratings were consistent. But we never saw `Jersey Shore` coming. Before, TV audiences were fine with seeing us all argue, but now they want you to punch one another in the face and hook up with three different people. Our cast was a bit boring and snoozeworthy in comparison. No wonder we got cancelled."
Despite their struggles, the couple insist they are not seeking sympathy.
Spencer said: "We don`t want sympathy. We did this to ourselves and feel like idiots. But we`ve grown up and are definitely not as naive anymore."