Oct 14, 2009, 11:00 GMT
Britain's Duchess of York has cancelled her birthday party.
Sarah Ferguson had planned to celebrate turning 50 with a lavish champagne bash at Royal Lodge in Windsor with her ex-husband Prince Andrew, daughters Princesses Beatrice, 21, and Eugenie, 19, and 300 friends, but has now scaled down the celebrations because of rising costs.
Instead, she will be joined at a London restaurant by just 12 guests.
A source said: "Everyone is sad the party won't go ahead but reality has hit home. Her debts are out of control and the dam is set to burst."
It was recently announced her New York media company is to close, having racked up debts of around £630,000.
She has also been taken to court by three firms in the past year over unpaid fees and costs of around £21,500, and faces bankruptcy over a £17,000 bill to image consultant Richard Owen.
The source added to Britain's The Sun newspaper: "If she doesn't get her finances under control she will end up millions in debt again. Someone may have to bail her out. It is not the fact she is over-spending or even extravagant. Sarah's problem is she has a big heart and can't stop trying to help other people. She is always flying to places and the costs are mounting up.
"Given the amount of work she does for others she deserves to be happy."
Her spokesperson said: "She will work through the situation."
This is not the first time Sarah has faced financial difficulty.
Following her divorce from Andrew in 1996, she became a spokesperson for Wedgewood china and WeightWatchers in America in order to pay off a £4 million debt.
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