Earlier this year it was revealed that Linda, 56, had failed to inform the council that she was earning money while still claiming help.
However the strain of the court case caused Linda's sister Coleen to have to talk her out of committing suicide.
Speaking to the Mirror, Linda said: "I was dreading appearing in court – a ton of weight has been taken from my shoulders. I am not a scrounger, I just made a mistake.
"I forgot to mention some money I got for appearing on Family Fortunes – that was my mistake."
In May it was revealed that Linda had been charged with fraud, after allegedly claiming £12,000 in benefits while working.
However Blackpool Council later dropped £8,000 from this when Linda claimed the deaths of her husband Brian, sister Bernie and mother Maureen had caused her serious stress and depression.
It's been reported that Linda is still paying back the remaining £4,000 and has received an official caution.