Katie Price given ‘weekly spending allowance’ amid financial woes

Katie Price narrowly missed being declared bankrupt - and now her loved ones are taking action.

The star, 40, who recently spent £6,000 on Christmas decorations, has been given a weekly spending budget to help reign in her spending.

According to The Sun, Katie's family made the decision to control her finances after becoming worried about how she spends money "like water".

A source close to Katie said, "Katie is so generous and loves treating the kids and can't resist what she sees as a bargain. But if you buy lots of bargains, it all adds up.

"So now, she's given an allowance for the week and can only spend over the total when she gets it approved by her team.”

Katie's also selling her clothing on eBay in a bid to sort out her finances.

Peter Andre's ex-wife has only just escaped bankruptcy after putting forward a repayment plan of £22,000 debt to the tax man.

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Katie agreed on an Individual Voluntary Agreement, which allows you to pay off debt in monthly instalments.

Despite her financial situation, Kieran Hayler's ex is still set on going big this Christmas.

She's thought to have spent thousands on decorations to make this Christmas the best yet.

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“She’s telling friends she must have spent six grand on decorations and the house alone – the tree is huge and has four sets of lights on it," a source told The Sun.

“She wants to make it special for all of the kids and Kris, who’s stuck with her through the ups and the downs. Katie’s finally making money again through the TV show and endorsements, so she’s determined to make this the best Christmas ever after what she calls a ‘sh*t year’.”

We bet that's not in the budget!