My dad is a stickler for rules, particularly where it involves hospitality towards other people.
As a teenager who’d occasionally sponge off my mates for a quick McDonald’s trip or to go out, I’d be reminded that it was important I pay them back.
It’s not just because he didn’t want my friends to think I couldn’t be trusted to borrow money – as a Muslim, he taught me to pay off debt as soon as possible, even if it was as little as £1.
Borrowing and lending has serious consequences in Islamic culture and debt is an otherworldy punishable offence – it may stop you from entering heaven.
While debt has social and personal implications for the average person, for Muslims there’s a religious element too.
The Prophet Muhammed who was noted as saying: ‘If a man was killed in battle for the sake of Allah, then brought back to life and he owed a debt, he would not enter Paradise until his debt was paid off.’
Outstanding debts are aligned with a person’s outcome in the afterlife so Muslims take it pretty seriously.
A corporate insolvency practitioner, Al-nur (who is Muslim) helps businesses and individuals in debt and he says they are often similar.
He tells Metro.co.uk that just as there is a great consequence for not paying debt off in Islam, there are rewards too to be had for those writing them off.
‘In Islam, debt is an obligation that needs to be fulfilled,’ he says. ‘Islam takes the matter of debt very seriously and warns against it and urges the Muslim to avoid it as much as possible.
‘However, we are taught that there is a huge reward for those who forgive and write off debt for someone who owes them money.’
Most of the personal insolvency situations he sees are to do with credit cards and payday loans with ‘ridiculous’ interest rates he says.
He understands that money just has to be borrowed sometimes, but encourages people to live without excess material consumption.
He adds: ‘Unfortunately, we live in an era where everyone is encouraged to live off credit. Everyone needs to own a house. Everyone borrows to finance a car or even a mobile phone.
‘So my obvious advice is you don’t need this material lifestyle. In Islam we are taught that we should live life like a traveller, this life is a matter of days and that we should work towards the next life which is eternal.’
Al-nur’s last bit of advice is to see a practitioner for free advice should you need extra support in handling it.
With such grave importance placed on the topic, we’ve answered some common questions surrounding debt and Islam.
What does the Quran say about debt?
There are several references to debt in the Quran.
One of the most important things is to write owed payments down. It’s decreed that every contract of debt should be written down by a scribe with fairness (no biases).
It’s also advised to have at least two witnesses. The Holy Quran also states that those lending must not make any profit on the monetary exchange (interest).
Interest is considered unjust and Islamic banks offer loans without charging it (that doesn’t mean Muslims get zero-interest loans, they still have to make contributions to a charity of organisation).
With such a great deal of importance placed on repaying debt, it can be easy for creditors to demand repayment.
However, Islamically, prosecuting poor debtors is forbidden and the demand for repayment should be postponed till debtors are in a better situation.
What if someone dies while in debt?
A family member or friend can pay on their behalf so Muslims usually urge one another to let their debts be known to others by writing it down or letting them know.
Heirs or loved ones of the person have to take on the responsibility of using the deceased person’s wealth to pay off their debt.
If no money is readily available, they have to work to pay it off through their own means or give something as a pledge because doing so is taking measures to discharge the person’s obligations.
How can Muslims get out of debt?
As with anyone in debt, they’d need to work out a plan to pay the lender back. But remember that interest is forbidden in Islam (you’re not supposed to swap money for money).
So whichever loans they take out may be a ‘halal’ one whereby they make some sort of ethical contribution or pay towards an asset instead of interest.
But many choose to ask their loved ones to cover them while they raise the funds. There are also charities and organisations aimed to help Muslims strategise against paying large sums back.
Duaas to help relieve debt
Duaas – or prayers – are a profound act of worship for Muslims. They can be used during salah (five daily prayers) or recited at any point in the day.
Prophet Muhammed is said to have taught a prayer to one of his companions Abu Umamah Ansari who owed money to someone.
It’s reported that once he recited the prayer, he was relieved of his debt.
He was advised to say: ‘Allaahumma inni a’oodhu bika min al-hammi wa’l-hazani, wa a’oodhi bika min al-‘ajzi wa’l-kasali, wa a’oodhu bika min al-jubni wa’l-bukhli, wa a’oodhi bika min ghalabat il-dayn wa qahri al-rijaal’.
This translates to: ‘O Allah, I seek refuge with You from worry and grief, and I seek refuge with You from incapacity and laziness, and I seek refuge with You from cowardice and miserliness, and I seek refuge with You from being heavily in debt and from being overcome by men’.
Muslims in debt may wish to recite this as a way to cope with financial woes.
While Muslims have an added religious obligation to their debt troubles, there are also religion-based solutions.
For example, those of the Islamic faith that have the means, have to pay annual zakat (charity). Instead of paying zakat, some may choose to pay off a relative’s debt.
This is considered doing charity and upholding the ties of kinship.
Ultimately though, Muslims believe God is just and kind, and they may choose to pray for their financial affairs to be made easier.
Debt Month
This article is part of a month-long focus in November all about debt.
Scary word, we know, but we're hoping if we tackle this head on we'll be able to reduce the shame around money struggles and help everyone improve their understanding of their finances.
Throughout November we'll be publishing first-person accounts of debt, features, advice, and explainers. You can read everything from the month on the Debt Month tag.
If you have a story to share, a topic you want us to cover, or a question that needs answering, get in touch at MetroLifestyleTeam@Metro.co.uk.
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source https://metro.co.uk/2019/11/11/the-islamic-importance-of-paying-off-debt-11045485/
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