Dappy's management had to pay £6,000 to debt collectors who wanted to visit him in the 'Celebrity Big Brother' house.
The singer's representatives were said to be frantic when bailiffs planned to serve the N-Dubz star with court papers by driving to the reality show's set in Borehamwood, Hertfordshire.
A source told The Sun newspaper: "His management got an irate call from bailiffs who said they were fed up hunting for him.
"His appearance on CBB had basically been winding up the creditors - so they were planning to go to the house to serve him with court papers.
"His people were worried it would have made him look ridiculous - so paid the bill."
It is not known what the 26-year-old star - real name Costadinos Contostavlos - owed the money for and he is already battling the taxman over an undisclosed sum which he has been ordered to pay by January 28.
His financial difficulties come weeks after N-Dubz bandmate Fazer - Richard Rawson - filed for bankruptcy.
The source added: "They will just have to sort it all out with him once he gets out of the house."
Dappy, who has been caught up in arguments in the 'Celebrity Big Brother' house, previously brushed off his money woes and insisted: "If you're talented you'll always be financially stable."
He also added that going on the Channel 5 reality show was the "kiss of death" for fading stars.