Kerry Katona 'to sell £1m home'

Kerry Katona is planning to sell her home in an attempt to save herself from financial ruin, it has been claimed.

According to The Sun, the troubled star fears she will be unable to pay her £4,000-per-month mortgage after losing her lucrative Iceland contract earlier this week.

The frozen food chain cut ties with Katona following the release of video footage which appears to show her taking cocaine in the bathroom of her £1 million Cheshire property. It is believed that police will quiz her about the allegations when she returns to the UK from a holiday in Tenerife.

A source commented: "Kerry's life is a mess. She's being chased by debtors and now the police. How much worse can it get?"

Katona's ex-husband Brian McFadden is said to be consulting lawyers over a possible custody bid for his two children Molly, 7, and Lilly-Sue, 6.

Meanwhile, her former publicist Max Clifford has warned that she will face a "tragic end" if she doesn't seek help for her problems.