Friend has asked to borrow money but I’m not sure

"Sorry friend, but no, I still haven't got any spare cash from moving last year, all my savings were completely wiped out and living costs are going up so I'm not saving any money."

This will stop them asking again. Definitely do not lend them money.

And never speak about money with them again.

Even if you got a loan agreement written up and signed by both parties, how will you get more than £2 a week back for the next x many years? They sound like the sort to turn round and say they won't be paying you back because they can't afford to and you clearly could afford to give them the money. What you have in savings is a very small emergency fund for YOUR emergencies. It is not a pot of fun money which you are undecided as to how to spend or can afford to lose. Your friends are feckless with money. The answer must be no.

Sorry no I can't cover it - you need to ask your families!

Just say you don’t have enough in savings and you can’t help, don’t let them guilt trip you they shouldn’t have asked in the first place and next time don’t tell them you have anything

You'd have to be a complete idiot to give them any money. It's not like you're loaded and can afford to just give away money willy nilly. They're asking for 40% of your savings, with absolutely no likelihood of giving it back. And you're inclined to say Yes just because you don't want an awkward conversation?

Come on OP, you know what you need to do.

None of this is relevant. Lending them the money is a crazy idea. I'm sure they have family members and other friends that they can ask. Sounds like they pegged you as the soft touch!

Don't do it. They sound completely irresponsible and you may never see the cash again

No way, they should be asking family to help. If you do this you won’t see it again.

Say no!! You won't get that money back and what happens if you suddenly need money for something urgently and then your savings account is down 2k! Tell them you also can't afford it right now.

NO.

Change that to: You will never see it

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Don't, it's a sure fire way to lose a friendship.

Should you decide to loan the friend money, put everything, particularly the fact it's a loan to be repaid (and in what time frame) in writing, get it signed and witnessed. In this instance, be prepared for the friend to try to change the narrative, refuse to repay for five years, have to be taken to court/threatened with bankruptcy in order to get the money back.

Ultimately, you are not responsible for your friend's finances.

Did they blow some of the 22k on insanely expensive cutlery?
More seriously, I have to add to the chorus of NOs.
If I could afford it and I loved the skint friends in question, I would give them the money. (and say it was not to be referred to again. No eternal gratitude needed ).
During our younger days we had friends who through no fault of their own, struggled massively over money. They never once asked for anything - it would have been entirely out of character. We helped out where we could, treats, meals, kids' clothes, and were very happy to do inexpensive things when we were out with them or visited.
We are still the best and closest of friends, and they're doing fine these days.

no - you cannot afford it

thats all you need to say

'I'm sorry, I don't have that available to lend you'

End of discussion.

As yourself OP, are you richer than the commercial lenders who turned these paragons of money management away and won't let them have one of their credit cards? As you only have £5000 in savings (which isn't enough to bar you from getting Universal Credit, because even the government accepts that we all need a rainy day fund) the answer is no, you are not richer than Morgan Stanley etc. Don't let them get their hands on your precious nest egg. Many years ago, I was a money advice worker and loans from/to family and friends were a regular bug-bear, not least because they could put lenders in hock. If they had a crisis while their savings were elsewhere, it quickly became a disaster. You shouldn't be in that situation for people who almost certainly won't be reliable about repaying.

No!! Consider it like this, the bank/credit card etc won’t take a risk on them due to their poor credit. Why should you take on that risk? I’m currently owed nearly £600 because I made that mistake with a family member and won’t make that mistake again. I know I won’t see my money again and you almost certainly won’t see yours again if you hand it over.

You should never lend money you can’t afford to lose.

Say no, sorry, I don’t have it.

Not your problem. With 4 children they should have been more responsible with the 22k and not wasted it away. Their situation to fix.

Definitely not. They are now reaping the consequences of not saving at least some of the £22k they got. Perhaps they’ll learn for future.
But for now, it doesn’t sound as though they’ll be able to pay you back, or it’ll at least take them a very long time to do so.

Just say no, you can’t afford to.

No! No! No! And No! Under no circumstances would I even be considering lending the money. There is only a very slim chance that you'll ever see the money again, don't risk it.

If you leant nearly half your savings to someone who spends irresponsibly, you would likely end up with no friend, no repayment, and an expensive house repair you couldn't pay for.

They can get a bank loan. You aren't a bank. You don't have much and you need to add to it, not throw away money on pushy irresponsible people.

What did you say when she asked you?

Nope. Definitely not. If you lost your job, not having those savings could mean you loose your house.
If they get funny, then they're not a good friend anyway.