The `Mean Girls` actress - whose most recent movie, 2009`s `Labour Pains`, went straight to DVD - faces having her credit cards blocked after reportedly running up huge bills with lavish spending sprees.
A source told RadarOnline.com: "Lindsay owes credit cards $600,000. One card cut her off last week and it`s only a matter of time before all her other credit cards cut her off too."
The 23-year-old star could be the subject of legal action if she fails to address her financial problems soon.
The source added: "One credit card company is going to discuss a payment plan for Lindsay. But if she doesn`t have the income and can`t make her payments, they are prepared to sue her."
Earlier this month, it was claimed the actress came close to being evicted from her Los Angeles home because she was two months behind on her rent.
The actress paid her landlord $23,000 after receiving a legal notice demanding the sum.
Much of Lindsay`s current income is believed to come from personal appearances, but her fees have been slashed to around $5,000 - $10,000 a time as her career as waned.