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I can completely relate to this. I think the best thing would be to talk to your friend and maybe arrange to do something like a dvd night in at your house with some food and a facemask and explain the situation. Personally i would love if someone made me a handmade cards. To me its not about the presents the most important thing is spending quality time with the people i love.
I think a lot of people just presume you have the money. I have a weddinbg next year and i am allready panicking about the cost as im single its the hotel, the travel, the outfit. the spends. Its all a lot when your on a tight budget and in debt. I know my friends will just be happy im there and it will not matter about how much i spend on a gift.
I would say speak to your mate and have a chat with her,
I love finding ways to have fun on the cheap on saturday 4 of us went to my mates for a movie night we all took a bottle of wine and i had the best laugh i have had in ages cost me next to nothing. I use ebay to buy presents and gifts, buying and selling.