friend wants to borrow £1k

what happens if you offer her the £200 you thought she was going to ask for, and say it's all you can manage at the moment? So supportive but not more than you are comfortable with...

This is the reason you shouldn't share with people how much money you have.

Because some "friends" will always be tapping you up.

Because then when they ask for a loan it's difficult to come up with a plausible excuse as to why not.

You might be able to say something like, that's not possible because all the money is locked away in high interest accounts and cannot be removed.

But I am guessing that if she is CF enough to ask for a loan, she is CF enough to get pissed off when you turn her down.

How on earth does she know you have any savings to lend? I can’t imagine having that sort of conversation with my friends. It’s nobody’s business.

If you dont want to do a straight no then how about.

"Hey. I can afford to help you out to the tune of a couple hundred quid for groceries etc but I can't access my savings as it's all tied up so I'm afraid there's no way I can lend you that kind of sum. Sorry"

I’d never lend money to friends and none have ever asked- it’s a really weird question imo.

just say no. Don’t justify our expenses or savings as you have here. Also don’t get into the mindset of questioning why she made the decisions she did. That’s none of your business and is judgemental. Just a no but I love you response

Do not lend her anything. Lending money ruins friendships. Just say you can't it's tied up in an isa and you have made the maximum withdrawals on it for this year

Look, if she’s an ok credit risk and a responsible borrower then she can get a credit card or temporary overdraft like everybody else does.

If she doesn’t have a good enough credit rating to do those things then obviously she’s irresponsible with money and you would probably never get it back.

Tell her that you can’t lend her that much, as all your money is tied up in a savings account, you’d have to give notice to take any out and by then she’ll be back in work anyway.

If you think she really can’t pay for essentials then I would offer to do an online shop for her but put in writing (text message is fine) that you can only afford to lend her the money and she’d need to pay you back by x date. That way if she doesn’t you’ll have some recourse.

FWIW we lent £2k to a very close friend a few years ago, and have pretty much given up on both the money and friendship now. Money often destroys friendships, so it’s a real risk.

Say no. Why is she buying a new car and booking a holiday if she has no emergency savings to fall back on?

Absolutely not.
”Never a borrower nor a lender be”.

Plus she’s taking the piss.
Why should you subsidise her, albeit “apparently” short-term, when you’ve worked hard to save and she can’t manage her budgeting. A car and holiday doesn’t sound essential if she hasn’t really got the money…

If my best friend needed £1k and I had it then yes I would lend it to them. I'd ask when they were paying it back and be clear I needed it back. I also wouldn't get into the habit of lending regularly but as a one off I would.

I also wouldn't be arsey about the car and holiday. Not very best friend like.

That being said, as others have pointed out you are under no obligation to lend to her

Im assuming her holiday was booked before circumstances changed? Did she need a new car because her last one was broken?

If so - if she truly is your best friend in the world I'd lend it to her - no question. I feel those who genuinely wouldn't lend their best mate £1000 when they had over £40k are not their best mate.

Absolutely not. She’s buying cars and going on holidays, she’s cheeky af asking to borrow a grand. How’s she going to afford to spend money on holiday

So Nb thing doesn’t ring true. She hasn’t worked - what about sick pay? You’re still entitled to that even if you’re leaving.

She’s going on holiday. Has she got spending money saved? If so, she can use that (and not go on holiday).

As others have said, she dan use a credit card.,

Does your friend know you have savings ?
She really shouldn’t that’s your private business.
No way would I be lending anyone 1K , especially someone that’s going on holiday .

Yeah, good idea about the food shop or offer to have her round for a meal a couple of times. She'll be fine. She's just taking advantage it's cheeky really.

As everyone always says on MN - only lend money you are prepared to lose, and in that case, just make it a gift. All this stuff about how much you have in savings is entirely irrelevant. Just politely say that you aren’t able to lend her the money and that you wouldn’t want money to come between you anyway.

I agree with PP don't discuss finances

"Never lend money you're not prepared to lose."

Honestly I wouldn't- it's not as if she's on the breadline. £1000 she could put on a 0% credit card and pay back herself rather than paying you back - unless her credit rating is so low she can't get one, in which case what are the chances she will pay you back?

If you're planning on buying soon I'd also be wary of how random payments would look on your bank statements when you apply for a mortgage. I think "sorry I wish I could but we're scraping together every single penny at the moment to try and get a house" is a pretty good excuse - tbh I'd be tempted to add a not-so-subtle "I'm so jealous of your new car, and who knows when we'll be able to go on holiday again!"

What have you got to gain from lending it to her? Nothing - if she's a good friend she will understand if you don't, and if she reacts badly she was never a good friend in the first place.

What have you got to lose? £1000 plus interest you're not getting, and awkwardness in a friendship when you keep asking her for it back, and aggro in your relationship with DH as he blames you and keeps nagging you to ask her....

Your money's tied up in an interest paying account and can't be accessed.As others have said offer to do a shop for her if necessary.

It’s a no from me.
Highly likely to go pear shaped.

You don't have to help her. She can put it on a credit card just like everyone else.

And if she's maxed out her credit card she shouldn't have booked a holiday. It's her problem, not yours.

No and stop telling people how much savings you have!

No. Say you cannot as you have expenses coming up! Total cheek in my view.

Surely she could use an overdraft or credit card. Should have waited to go on hols. That said I would lend to my best friend.