Ryan Deiss: My advice is to never loan money to anyone, unless you’re running a bank.
If the person means enough to you and you have the cash, then give it. Give it freely, and tell them you have no intention of accepting their repayment.
If you can’t afford to give it, then you can’t afford to loan it.
Simply tell them, “I’m sorry, but I don’t have the available funds to help you at this time.”
Also, loans fundamentally change relationships for the worse, while gifts change them for the better.
Even if it turns out the person is scamming you, at least you find out earlier, and you can remove that person from your life.