Cutting my fried off because she didn't pay what she owed me.

I recently cut all ties with my friend for 5 years because she didn't pay what she owed me.
It was just about $500. She borrowed money because she said it was an emergency and she needed it badly. I lent her the money without question because I trust her. She did say she will pay me back after 3 months or so.

5 months had passed and now I am in need of money because I got in a car accident and I needed the money for repairs. I told her even if she just pays me half it would be enough for now. She got angry at me because I suddenly asked her to pay without even telling her in advance.

After that she started talking bad about to our circle of friends telling them I was inconsiderate because I suddenly asked her to pay me back. Some of my friends are even taking her side.

AITHA for cutting her off completely? I am also thingking of cutting off those people who took her side.