<prompt> Human: So growing up, Ive always had the mindset that I should never lend money to friends, unless Im okay with never getting that money back.However, whats the best way to approach a case where you are going to lend money to a friend to pay off their credit card bills and student loans say 20k and charge them 0 interest, but require 1K back every month?Should I draft a contract? What do I include in it?My best friend has debt where hes paying like 15-20 APR and hes just paying off so much interest every month. I much rather he get that debt out of the way, so he can not worry about interest. Money comes fairly easy to me and I do have a lot in the bank thats just sitting there, but I still dont want to be taken advantage of. He hasnt asked me for a loan hes too proud, but I know its something that hell greatly appreciate and I really want to help him out.  <response>: Ask yourself, even if you do draft a contract are you willing to take your friend to court if he fails to pay? If not, the contract is pointless. 