You totally did the right thing. Since it sounds like she could use some emotional support I'd consider that if you do value her friendship but make it very clear that is all she is getting from you.

Fortunately my friends and family don't have these problems but a friend of mine has a couple like this. They think because she works hard and lives frugally that it is ok to ask her for money. She has been burned several times before and now has a no loan policy. What is really amazing is that these same friends will make snarky comments about the old car she drives or that she shops at The Good Will.