The 30-year-old reality star lived with Katie, 40, in 2013 after hitting it off on TV show Signed By Katie and is worried by Katie's boozy behaviour.
She told Closer magazine: "I really hope Katie gets a wake-up call soon and realises she needs to turn things around. Things like drink-driving and wild partying are dangerous – she could even end up dead.
"Katie is a proud person and doesn't like to admit vulnerability – I think she sees that as a weakness. But right now it seems like she's on a path of self-destruction. She'll only get better if she wants to get better."
Katie checked into rehab for PTSD and cocaine abuse last month, but moved into a residential clinic last week after she was arrested on suspicion of drink-driving.
However, she fled after less than 24 hours due to the "prison-like conditions", telling pals the room smelled of cabbage.
Amid her ongoing bankruptcy battle, the mum-of-five was seen browsing nearby properties for sale yesterday, in a hint she is finally selling her famous West Sussex home.
She later took a phone call with a smile on her face – showing no signs of strain from her recent woes.
Katie was given 12 weeks to stave off financial ruin in August, despite the public thinking she had cash to spare.
She did not appear at the High Court's Rolls Building for the hearing in August, but her team submitted proposals for an individual voluntary agreement (IVA) on her behalf.
Her application will be heard on October 30.
Katie first checked into The Priory last month after an intervention from her family, who grew concerned about her behaviour when she was filmed rapping "I love coke" during a wild night out in Majorca.
Her life began to crumble earlier this year, following her divorce from third husband Kieran Hayler and the collapse of her businesses.
The Sun later revealed that Katie, who was once worth £45million, had blown her entire fortune on plastic surgery, luxury holidays and a £1million farm.
Her country mansion has fallen into disrepair during her troubles – with the swimming pool rotting and her drive littered with rubbish.
The house fell into decay after Kieran moved out in May, and Katie proceeded to jet off on numerous holidays with toyboy boyfriends Kris Boyson and Alex Adderson.
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