If you are considering making a loan to a friend or family member, first consider whether the loan is a good one to make. If the person is unable to obtain financing through traditional means, they are probably not a good risk for you, either. Nevertheless, if the loan is made, make sure that it is in writing, and that it complies with all of your state's laws. Also, be sure to keep from running afoul of any collections laws if your friend or family member fails to repay as promised. Remember, few things can ruin a relationship faster than money issues, so carefully consider the possible consequences of lending money you may never see again. If you do end up having to pursue collection efforts against the debtor, you may wish to consult with an attorney who can assist you in those efforts.