The Fear singer who has sold millions of records worldwide is struggling in the current economic climate and has even had to sell her beloved £35,000 BMW 320 convertible car.
She said: "I've been hit big time by the credit crunch. Actually, I just had to sell my car because I'm so broke.
"I bought a car last year and that was probably my biggest extravagance.
"I can't even spend on credit cards. I'm waiting until I get the royalties from the album and all the radio plays but that takes about a year.
"The banks will usually front your money in that kind of situation but they are not lending at the moment so it's a tricky time."
Lily is so worried about her financial situation she is even looking into an alternative career as a baker.
She added: "I'm really enjoying my life but if it lasts, it lasts, and if it doesn't I'll find something else. There's always a cake shop. I really like baking."
However, despite enjoying huge success with her current album It’s Not Me, It’s You, the 23-year-old star who is currently single following a brief relationship with 45-year-old art dealer Jay Jopling claims her career isn’t her main focus.
She said: "Isn't the point of life to find a partner? That's the idea, isn't it? I don't know if I want to get married. I know I want to be falling in love, that's the good s**t."