He told a High Court judge he was "constantly overdrawn" and regularly blew £40,000 in a weekend before withdrawing another £25,000 on Monday.
The 25-year-old is being sued by his former agent, Chris Nathaniel.
The agent says he owes a £284,000 fee plus interest for managing his finances.
Martins signed the a lucrative £75,000-a-week contract when he joined Newcastle from Internazionale for £10 million in 2006.
Robert Tennink, the lawyer representing NVA, told the High Court in London: "Despite earning these vast sums of money he was constantly overdrawn."
Martins, now of German champions Wolfsburg, owned a multi-million pound mansion in Darras Hall, Northumbria and rented a luxury flat on Newcastle's Quayside. He also had several high-performance cars.
The hearing is scheduled to last for three days.
He was always a one for "tall tales" when he was on Tyneside, the classic being his alleged ambush when he was on a trip to Lagos to see his family.
There was a gun attack at a petrol station, and Martin's claimed he had to run for cover as bullets were sprayed everywhere.
The police investigated ... and he was 40 miles away ... at his mother's house at the time of the incident.
NewcastleUtd-Mad are proud to say they are to sponsor top Geordie club act "Local Heroes". The three-piece are back on Tyneside after a successful summer season in Spain.
If YOU book them ... NewcastleUtd-Mad will pay £50 towards the fee.
Are you looking for entertainment for a wedding, birthday party or Xmas party?
Award-winning LOCAL HEROES feature the fabulous Julianne Day - one of the best singers in the business - and live guitar and keyboards from Kev and Ritchie.
Geordie act "Local Heroes" are regarded by many as the best English act on the European holiday circuit.
Julianne Day: "We entertain young and old (depending what you require) - music from the 1950s to present day - Billy Haley to Kings Of Leon - plus music from our Geordie roots ('Going Home', 'Coming Home Newcastle', 'Blaydon Races', and classics from Lindisfarne)
"But we have over 100 songs and suit all occasions, with material from: Bon Jovi, Cher, Dusty Springfield, Proclaimers, Tina Turner, Journey, Queen, Abba, Bay City Rollers, Showaddywaddy, Amy Winehouse, Bryan Adams, and loads loads more.
"We can also provide disco/backing music at no extra cost."
PLEASE BOOK WELL IN ADVANCE BECAUSE THEIR DIARY GETS FULL VERY QUICKLY!
Phone Kev: (mobile) 07811224153
E-Mail: Kev Kevnumad@fsmail.net