The 24-year-old, her three sons and daughter are due to be evicted on Boxing Day due to rent arrears.
Miss Morgan, from Lampeter, Ceredigion, said her family will get a Christmas thanks to assistance from a charity.
"I don't know where me and my children are going to be on Boxing Day but I'm trying to stay positive," she said.
Miss Morgan and her children, who are all under six, will have Christmas dinner at Victoria Hall in the town cooked by Home Start Ceredigion, which helps people from across the region.
The charity also collects donated toys, books and gifts, meaning Miss Morgan's children will have presents to open.
"The children just want Santa to come, so that's my main thing at the moment is to make sure they have a good Christmas Day.
"Then they think 'we've been good this year' because they have - they've had a really really tough year."
Home Start Ceredigion's manager Sharon Morris said: "We're trying to help as many families as we can because people don't realise that this kind of poverty and homelessness isn't just in cities it is going on in rural areas.
"People get into debt and it's difficult to get out of it."
Miss Morgan said the council was not able to help until she is actually homeless and she has a viewing for another home, but it is an uncertain time.
"Me and the kids don't know where we'll be on Boxing Day - we might be sleeping outside my front door, we don't know."
If she cannot find accommodation, Miss Morgan and her children will try and get help from a refuge in either Cardigan or Borth.
Despite this, she said she is trying to be upbeat and said her family will enjoy their Christmas.
"All I want for them is to enjoy two hours out of the day where we can be a family and enjoy other people's company and not be on our own."
As families across Wales enjoy their Christmas Day, mother-of-four Michelle Morgan faces the prospect of being homeless the next day.