Demi Lovato 'Knows She Needs Help' Fighting Her Demons

"She is there to deal with emotional and physical issues she's been battling her whole life," says a family source

Photo: Albert Michael/Startraks

As she enters her second week of treatment for “emotional and physical issues,” Demi Lovato is determined to beat her inner demons.

“Demi knows she needs the help and knows that she is where she needs to be right now,” a source close to the family tells PEOPLE.

Sources tell PEOPLE the 18-year-old star was “out of control” long before she punched a female dancer, whom she thought squealed on her for partying. “This is a girl with emotional problems who has been fighting demons her whole life,” a source close to the family stressed.

Lovato is at a facility that specializes in treating adolescents and adult women with a variety of issues, including eating disorders, mood disorders and substance abuse problems.

“Demi is not in treatment for drugs. She is there to deal with emotional and physical issues she’s been battling her whole life,” a source close to the family says, noting Lovato has long struggled with eating disorders and cutting.

As she focuses on getting better, her family is firmly behind her. This past weekend, her stepfather Eddie and mom Dianna De La Garza and her sisters, Dallas, 22, and Madison, 8, visited Demi on both Saturday and Sunday, the source tells PEOPLE. “It marked the first time the entire family had been together since Demi started treatment.”

So how is Lovato? “She is determined to get better. She recognizes that she has a difficult road ahead,” says the family source, adding, “Demi is committed to her treatment.

For more about her breakdown and what led Demi Lovato to finally seek help, pick up this week’s issue of PEOPLE magazine on newsstands Friday