If you don't feel comfortable lending money to someone, then it's OK to say so. You may get some pushback, but it's important that you're only lending money when you're confident that it won't cause the relationship to go south.
Just say ``Sorry, I do not have any money to spare. I can't help you.'' Then end the conversation. Do not offer any excuse or explanation. If you do, they will try to ``argue'' to guilt you into changing your mind. Once you start saying no, do not back down or you will become their personal bank.
The Best Excuses for Not Giving Family or Friends Money
“I'm not currently in a position to lend you money right now.” “I don't want to hurt our relationship, so I'm not comfortable giving you money.” “I can't afford to lend you money. My budget is too tight right now.”
DON'T EXPLAIN OR MAKE EXCUSES.
Say, “I'm sorry, but I can't give you a loan.” When the person asks, “Why not?” just repeat your statement.
Use "I" statements to keep the focus on your perspective and avoid making the other person feel judged, or blamed. For example, "I feel uncomfortable lending money because it could affect our relationship," or “I just don't have the funds to do this.” If it feels awkward, practice ahead of time.
You can also say that someone is penniless. This is slightly more formal than poor. At the time, I was a penniless student. The word impoverished can be used to describe a person or area that is extremely poor.
Failing to pay could result in your account going into default, the balance being sent to collections, your lender taking legal action against you and your credit score dropping significantly. If money is tight and you're wondering how you'll keep making your personal loan payments, here's what you should know.
If I don't want to give money to someone who asks me, rather than go past and ignore him, I will look at the person and kindly say, “I'm sorry, I don't have any money.” Typically, the person will respond politely with “God bless you” or “Have a nice day,” and then move on to the next person.
If the gift is disproportionally large or you really don't want to accept the money, offer some alternatives after you thank them for their thoughtfulness. If you know them well, suggest they bake your favorite treat, buy you a drink next time you're out together or help you with a chore.
You can say, "No, I can't let you borrow that. It's special to me, and I don't want it leaving this room," or, "That's my favorite shirt, and I know you'll be careful when you wear it, but I would be really upset if something happened to it or it got ruined. You can borrow another one, though!"
Explain briefly the situation
Whether the conversation is face-to-face or over the phone, explain to the customer that unfortunately you won't be able to offer a credit account at this time. Say that you may be able to offer an account in the future; perhaps in 6 months and that you value their custom.
Poor, impecunious, impoverished, penniless refer to those lacking money. Poor is the simple term for the condition of lacking means to obtain the comforts of life: a very poor family. Impecunious often suggests that the poverty is a consequence of unwise habits: an impecunious actor.
You can say "no" firmly without being rude to the person making the request. Sympathize with the other person while being clear about why you're declining. Provide an honest reason for saying "no" and be gracious in your response to show respect for the other person.
Instead of putting yourself in financial hardship, just be honest about your money and try offering the truth—or a practiced version such as, "I just can't swing that right now," "That's a little out of my budget," or "no can do." There is no counterargument to this.
Express empathy and understanding for their situation and assert your financial boundaries. Remember that refusing their request is not a personal attack on the person asking for help but rather a responsible decision for your own financial well-being.