After the weekend’s shocking news of Michael Jackson’s death, his debt management has come under the microscope as the lawyers unearth shocking debt problems.
Following his swift exit, lawyers were set to divide his estate between his family and three children, but whilst sifting through his accounts huge debt problems have been discovered.
It seems Jacko ignored the first rule of money – don’t spend more than you earn.
Despite amassing a multi-billion dollar fortune, Michael Jackson spent an even bigger amount, frivolously lavishing his money on shopping sprees and maintaining his Neverland ranch.
Debt management was something that Jackson could have concentrated more time and energy on, as despite his record “Thriller” being the best-selling of all time (selling over 104 million copies), he still only narrowly escaped Neverland from being closed.
At first his debt problems were undiscovered, as he shrewdly outbid Paul McCartney for the Beatles back catalogue in 1985 (worth millions in royalities). However it was reported that he was forced to merge ATV with Sony’s song library and offload its music publishing rights to raise some much-needed cash a decade later.
Once he’d spent that money, he then needed to put up his share of the ATV assets as collateral in exchange for $200 million in loans from Bank of America.
Various reports in the media estimate that he owed between $400 million and $500 million at the time of his death.
But these reports of Jackson’s financial affairs shouldn’t surprise anyone who remembers the 2005 trial he faced, where his finances were made public.
During the trial for child molestation charges (of which Michael Jackson was acquitted) a forensic accountant testified that he blew $20 to $30 million more per year than he brought in.
Debt advice organisations hope that the finances of Michael Jackson will prompt people to look at their own affairs more closely.
Ivan Cooper, Chairman at leading debt management company Chiltern said: “Even for celebrities with the potential to earn millions, there is the risk that they can overspend.
“When that happens it’s inevitable that debt problems will occur – as the credit will dry at some point. It’s always better to seek impartial debt advice sooner rather than later, before any debt management issues have chance to develop.”
Reputable providers of debt management help include Hamilton Locke, The Debt People and Chiltern. These companies offer a range of debt help solutions that can help you to regain control of your finances whilst still repaying unsecured debts – like personal loans, overdrafts and credit card debts.
For free and immediate debt advice, or for further information on a range of debt help solutions, please call the number at the top of this page.
