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."