"I'm not broke, I'm not going bankrupt, nor am I giving up," Sarah tells the magazine in a frank and at times emotional interview
Stories have been circulating that the Duchess of York is bankrupt and, even incredibly, that she planned a lavish 50th birthday only to cancel because her finances were in such dire straits.
Now, after months of outlandish press, Sarah has given just one interview - to HELLO! - telling the truth about her financial situation in her own words.
"I'm not broke, I'm not going bankrupt, nor am I giving up," she says in this week's magazine .
She admits being left with debts of £600,000 after her lifestyle company Hartmoor collapsed because of the global downturn.
But the resilient mother of two – who has recently sold the film rights to her children's books and been invited to present a series of documentaries about female explorers - promises to pay every penny back.
As to any talk of extravagant celebrations, her daughters Eugenie and Beatrice organised a quiet dinner for close friends and family, including her sister and niece who flew over from Australia.
To read the full interview, pick up a copy of HELLO! magazine, issue 1096, on sale now.
It's a little princess!