I'm not in the habit of loaning money to friends. If I were to ever seriously consider it, I would write up a contract for them to sign their name to, stating how much is owed and the method of paying it back. Prior to the writing of the contract, I would need to believe them more than able to make the payments and possessing sufficient reason to do so beyond the contractual obligation (ie: strong/stable friendship, mutual contacts, trustworthiness).
The loan will only be made if it does not alter my financial circumstances and affect my current quality of living.
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