Many, many people are in financial trouble because they've given a friend or family member financial assistance that they clearly cannot afford — making a loan that isn't paid back, offering free room and board, buying a car for someone. Don't let this happen to you.

If a friend or family member is in need, you absolutely must help. But, if possible, avoid helping financially unless you can afford to lose that money completely. Always assume that loans won't be paid back or will be defaulted on, expenses associated with free room and board will be completely on your shoulders, and so on.

If you can't afford to lose the amount of money that helping your friend will cost, don't help financially. Offer prayers, free babysitting (for a limited period of time), an occasional ride to work, and so on.

Also consider taking your friend to a credit-counseling agency or to a lender to see about getting financial assistance. Don't, however, co-sign any loan that you cannot afford to pay off yourself.