Wednesday, August 7, 2013

Is Lack of Education Responsible For Financial Woes? #31WriteNow

Lately music producer/rapper Jermaine Dupri has been in the media for financial troubles, but it wasn't always that way.

Jermaine Dupri, also known as JD in some songs, is responsible for some of the hottest talents of the 90's and lots of timeless classics. Just to name a few Dupri introduced us to Kriss Kross, Da Brat, Xscape, Destiny's Child, and Bow Wow. Recently Da Brat released a music video and represented the label SoSo Def, showing love to the label she's always stayed true to. His entire catalogue of music today adds up to a net worth of $20 million. So how could a man whose career has prospered so well be having financial troubles? Dupri blames it on education, or lack there-of. 

However, is lack of education really to blame? It's good that Dupri admits he didn't know what he was doing when it came into finances. He just walked into the current situation with Sun Trust Bank blindly. He claims in 2010 a banker talked him into signing a loan agreement that increased his payments. He was convinced this was for his benefit. You can read the entire article over at Your Black World. According to the article Dupri has paid more than half the loan back, but has been struggling with payments for the last couple months. Plus, while he is losing, the bank is winning big time. 

The loan is for $5 million, but JD put up his entire music catalogue worth $20 million as collateral. This means that if the rest of the payments cannot be made, Sun Trust owns SoSo Def's music. 

Do you think this is a lack-of-education problem or just a need to have better? A lot of his famous songs involved rapping about money, cars, and nice clothes. Everyone knows in order to make more money you have to spend money. It's also a known fact that a lot people who start from the bottom tend to go overboard with spending when they get to the top. It's not because they weren't educated on the money. They just weren't used to having it and wanted to enjoy what they had. 

I hope Jermaine Dupri works through his financial problems. Whenever I look at my own bank account and the few credit cards I do own, I'm reminded about how hard being financially responsible really is when there's always this craving for better.

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