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Katona has spent money on booze for her mad party lifestyle and on beauty treatments for her mother, Sue.
Kerry was recently taken to court by her mortgage company Cheltenham and Gloucester, who already have an order of possession on her home and wanted to enforce it and get her out.
She vowed that she would start paying her 2,450 pounds monthly mortgage on 1.2 million pound home where she lives with her husband, Mark Croft and children Molly, Lilly Sue, Heidi and Maxwell. She has managed to get a two month stay order from court.
Kerry had not paid paid her mortgage company for more than a year.
Kerry has had months to sort this out but instead she has stuck her head in the sand and refused to pay.
“Now she actually hasn't got the money to pay it and if she doesn't find it from somewhere the mortgage company will send in the bailiffs. She could be on the streets by Easter. She only has herself to blame," said a close source.