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my friend ask me for money, and is unhappy because i said no

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My friend asked me to lend him 120 quid but i said i can't. He is in an awkward position where he needs money to pay off somethings. I probably did the wrong thing because i was brutally honest and told him the last time someone borrowed money from me they didnt return so I dont trust anyone with my money anymore. He left the conversation with "then carry on with your life". Doesnt sound like he was very happy with me.

Was it my fault ? How should I have responded without upsetting him.

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