Have you been asked to co-sign or guaranty a loan for someone?
It doesn't matter if it's your child or favorite niece, don't do it. I have handled numerous debt related matters where the friend or loved one failed to pay the debt, such as a car loan or mortgage. You know who the bank comes after to collect? You, the guarantor or co-signer.
I don't care what kind of sob story they give you. You'll regret the day you did.
AND THE COROLLARY -- a friend has come and asked to borrow money from you with all sorts of promises to repay.