The former glamour model, 41, is facing fresh financial misery and has been spiralling into debt over the last few years.
Now, friends have claimed that she’s selling the expensive jewellery her ex bought for her in an attempt to get back in the black.
The mum-of-five was given three engagement rings by singer Peter, with whom she shares kids Junior and Princess, after they met on I’m A Celebrity in 2004.
Pete soon popped the question and they married in 2005, before separating four years later.
A source told The Sun : “Katie’s got three engagement rings from Peter – she wants to keep the first one for Princess but the other two ‘upgrades’ she’s willing to sell.
“She says they’re worth nothing to her anymore and she wants a fresh start.
“She’s not sure if she’ll sell them in a private auction or a public sale but she wants to sell them to the highest bidder and cash in.”
The insiders say the two rings she’s planning to sell are worth around £230,000.
The first “upgrade” is said to be worth around the £150,000 mark and the second is thought to be worth around £80,000.
After her bankruptcy hearing, fellow reality star Kerry Katona told her she shouldn’t feel guilty about blowing her £45 million fortune.
Mum-of-five Kerry has been made bankrupt twice before and although she’s battled back from the brink, her finances are still tight around Christmas.
However, the former Atomic Kitten star insisted Katie should not feel bad about her struggle.
In her column for this week’s new! magazine, Kerry wrote: “She’s just been made bankrupt, but she should take this opportunity to start afresh.
“My advice would be to surround herself with good people who she trusts and try not to feel too guilty.
“All my money was stolen from me, so it’s a slightly different situation to blowing £45 million, but hopefully Katie will go easy on herself, as bankruptcy is a truly horrible experience.”
Mirror Online has contacted Katie’s representatives for comment.
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