Pricey is said to have blown her £45million fortune

Katie Price has come under fire from her former friend Jemma Lucy over her much-publicised money woes.

The mum-of-five narrowly avoided being declared bankrupt earlier this month after reportedly blowing her £45million fortune, and now has three months to come up with a plan to pay off her huge debts.

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Now Jemma – who became pals with Katie when she appeared on her TV show Signed By Katie Price in 2011 – has called her ex-pal ‘stupid’ for getting into such a financial mess.

‘How can you be that stupid? To lose all that money and not to have invested wisely for your future?’ Jemma, 30, told The Sun. ‘It’s ridiculous.

‘I am blown away that Katie is on the verge of bankruptcy – she had a clever, business brain and was always thinking about her next venture.’

Jemma has claimed that she observed Katie’s spending habits when she lived with her whilst they were mates.

‘When I lived with her she told me she’d bought her house outright for six million. Now that’s all gone?’ the Ex On The Beach star explained.

‘But you see celebrities like Katie, their lifestyles become so expensive they just can’t keep up and they start spending money like water.

‘Blowing thousands every day just trying to keep up the lifestyle they’re used to. And it’s impossible.’

Jemma insists that she’s managed to look after her own finances since finding fame, having set up two dating websites, and thinks that Katie could find ways to make extra money too.

‘It’s all about being clever and not blowing everything you earn,’ said Jemma, who appeared on Celebrity Big Brother last year.

‘I’ll lie in bed on a Sunday and I won’t get up until I’ve made a grand. Getting booked to go to a club, do a few plugs. Katie could do this if she needs the cash.’

It was recently reported that Katie has apparently slashed thousands off the rate she charges for a personal appearance – with her cost going from £20,000 a night to just £5,000 – in the hope of booking more dates.