The Freedom of Living W it hout Debt Th e D e b t D e b a cle : Th e Con se q u e n ce s a n d Re so lv e

( 7 vot es, average 5.00 out of 5)

By Maria Zain
Tuesday, 24 April 2012 00: 00

Just in 18 to 20 inst allments, you too could be t he proud owner of t his [ name as expensive gadget t hat s too expensive] . Swipe your card and t his [ family packaged furnit ure set] will be yours. We deliver instant ly right to your doorstep, for no ext ra cost . We accept all maj or credit cards for purchases above $10.

cant afford in At a 12% int erest , your monthly debt . inst allment s will st ill remain $10 per mont h. (I nstallments may take up t o 35 years).

Borrowing m oney t o buy or finance som et hing t hat we t he first place m eans t hat we are going in

We offer 100% financing for all your needs. (Terms and conditions apply). How long have you been dreaming of M ore on De bt & I nt e re st this home? How many t imes do you look at t he gleam of t his car... give us a - Th e I lls of I n t e r e st : Confe ssions call now, and we can turn all of your - De bt - ridde n Am e r ica ns Cha n ge Life st yle dreams int o realit y. Does the above sound fam iliar?
- Doe s I nfla t ion Just ify I n t e r est ? - Bu ying a Ca r w it h I nt e re st - Ba se d Loa n

I t probably does if youre living somewhere in t he West, or somewhere - I s Toda y s I n t e r est Disa llow e d? away from the West but where t he nuances of financing and credit cards are becoming t he norm.

Swipe that card and j ust wait and see. What ever you want or need is now yours. You can always pay it off lat er, even in a few inst allment s. Online shopping? Not a problem. Key in a few numbers of your credit card and you can have t hat product delivered t o your office or home within t wo days. Running low on cash and need to go on holiday? Apply for a personal loan spend first and enj oy dish out a few bucks every mont h as payback you wont even not ice it . This is t he life of convenience. The above scenarios are all too real and while it seems superficial to some, it is not that difficult to fall for t he debt t rap. I t may seem harmless t hose few dollars in mont hly repayment - and at t imes, it may not even seem like debt . The convenience of shopping with credit cards; being able to own somet hing t hat you wont be able t o own otherwise; t he ease of receiving somet hing wit hout put ting up some hard work in t he first place. I t seems like t he icing on a very convenient cake of life. And because taking up loans and swiping credit cards have become the mainst ream of spending, everyone, including Muslims, get caught up swiping credit cards and taking up loans, t o t he point t hat we forget t hat there is danger in committ ing t o these types of spending habit s. I n realit y and in I slam this is what we call debt. Living in the Mainstream Mode of Money Borrowing money to buy or finance somet hing t hat we W hen w e enter int o cant afford in t he first place means t hat we are going these types of in debt . We owe someone, something; we owe transactions, w e are someone money. I t may look harmless t o borrow a few technically in debt dollars from a friend for a quick lunch, but in realit y, that money is not ours, and we need to repay our debt. That is j ust a few dollars of debt over a meal. But t he same goes for the t elevision set that we purchased using t he st ores flexi plan; t he clothes t hat we purchase online by using a credit card; and t he loan repayment on t he car and on t he house. When we ent er int o these types of transact ions, we are t echnically in debt . Borrowing is allowed in I slam for sust enance over t hings that are necessary. God even st ands by t hose who borrow money wit h sincere int ent ions t o pay these funds back. There is a hadit h that reads: "Whoever t akes peoples wealt h intending to pay it back, Allah will enable him t o pay it back." (I bn Maj ah) Prophet Muhammad (peace be upon him) also said:

"Allah will be with t he borrower unt il he pays off his debt , so long as t he loan is not for somet hing t hat Allah dislikes." (I bn Maj ah) Perhaps a home and a car are seen as necessities t oday. But what about everyt hing else? Gadget s, mat ching furnit ure, an excessive collection of clot hes and accessories, second cars and second homes, quarterly holidays abroad... personal loans for personal shopping, personal loans for financing how do t hese add up in light of t he Quran and the Sunnah? Are t hey not luxuries, rather than necessities? I n t he Quran, chapt er 17, t here is a verse t hat shuns over expendit ure, something that is also hat ed, after miserliness: { Nor overextend it ( like a spendthrift) m eans, nor be extravagant in spending and giving m ore than you can afford, or paying m ore than you earn, lest you becom e blam ew orthy and find yourself in severe poverty.} ( Al-I sra 17: 29) Credit card advert isement s as well as easy inst allment plans may look harmless and even att ract ive, but it also hones in ont o our nuances t o end up spending ext ravagantly. Of course, it is subj ect ive as to what const it ues a need and a want from person to person but humans desires are oft en insatiable and t hese types of schemes play t o our weaknesses. We all know t hat ext ravagance leads to greed and a propensity t o show off, which in t urn, leads t o miserliness and att achment t o mat erialist ic wealth. Materialistic wealt h root s us in the worldly affairs and causes us forgetfulness of t he Hereaft er. W hen Usury Happens But besides ext ravagance, the sordid problem with m any fam ilies are falling debt is compounded when riba (usury) piggy-backs on into financial hardship in loans and credit card plans. This causes borrowers, not repaying debt that is only to be oppressed, but t o incur sin. laden w ith usury Credit card companies and convent ional banks are t he t ycoons of int erest t hey thrive on such income. I nt erest also known as usury is largely forbidden in I slam, defying the cause of lending to t hose who are financially in need: { Allah w ill deprive usury of all blessing, but w ill give increase for deeds of charity} (Al-Baqarah 2: 276) I n a st rong hadit h, Abu Hurayrah related that t he Prophet Muhammad said: "On t he night of the Miraj I came upon a group of people whose bellies were like houses. They were full of snakes which could be seen from outside t heir bellies. I asked Gabriel who they were, and he t old me that t hey were t he people who had pract iced riba." (Al-Albani) Even during his farewell sermon, Prophet Muhammad reminded sternly but kindly about t he dangers of usury. He said: "Allah has forbidden you t o take usury; t herefore all riba (usury) obligat ions shall hencefort h be waived." You would never hear of usury obligations being waived t oday. And many families are falling int o financial hardship in repaying debt t hat is laden wit h usury. A house wort h $200,000 could end up wit h an addit ional $100,000 wort h in riba. A shopping spree at the mall wort h $5,000 in credit card charges could have an additional $2,000 slapped on to t hem in t he form of int erest , and that is not even including late payment s, which can oft en happen. Being st uck in debt is torment . I t is deadening and stressful, especially when t here are still daily expenses that have to be paid, families t hat are also growing, and with them come multiple needs and wants. Anot her problem is also inflation wit h t he value of money decreasing, t hose who are in debt are wrangling wit h even less real income t o deal wit h daily spending, repaying off loans and credit card bills and trying to put a bit of savings t o salvage t he future. Overwhelming debt can lead t o bankruptcy and depression t here have even been cases of suicide relat ing t o debt . A Muslim in Debt Taking on debt , whet her interest -based or not , has some serious consequences as a Muslim. I t was narrat ed by Aisha t hat t he Prophet used t o say in his prayer: "O Allah, I seek refuge wit h You from sin and heavy debt . Someone said t o him: How oft en you seek refuge from heavy debt ! He said: When a man gets int o debt, he speaks and t ells lies, and he makes a promise and breaks it." (Al Bukhari & Muslim) I magine t he Prophet being afraid of debt he was afraid of debt as he was afraid of heavy sin! When we purchase something with a promise of There are w ays to avoid repayment in a st ipulated number of inst allment s, it debt, or at least, curt ail begs to wonder whether we will live t o see t he debt the am ount of debt one through. I magine t he burden of debt being carried t o can m anage. the grave. The Prophet refrained from offering t he funeral prayer for one who had died owing t wo dinars, unt il t he companion Abu Qat adah promised t o pay it off for him. When Abu Qatadah saw him t he following day he said, I have paid it off, t he Prophet said: "Now his skin has become cool for him." (Ahmad)

I t is gut -wrenching t o know t hat such a small price of debt can lead to harshness in the grave. I magine being denied Jannah (Paradise) because of a few dollars. Narrated from the companion Thawban that Prophet Muhammad said: "Whoever dies free from three t hings arrogance, cheating and debt will ent er Paradise." Gone were the days where people worked hard, saved up and t hen only purchased the goods t hat t hey needed. But wit h all sort s of financing and credit card schemes ruling t he roost , t he norm is t o buy first and t hen pay later. Unbeknown t o many, this t ype of cult ure act ually pushes prices of goods and services t o go up. Think about it. Let s say a st andard home cost s $300,000, for example, and only a handful of people have t hat amount of cash. This leaves the maj ority let s say 80% - of no-home owners wit h t he opt ion of taking up a housing loan, the prices of houses will cont inue to rise, as t here is a provision of taking a housing loan, when you cant actually afford a home in cash. Taking up loans also feeds income back t o these inst itut ions t hat are already thriving and growing on usury. However, if t he 80% maj orit y j ust rej ected house loans and refused t o purchase a home t hrough a loan, propert y developers would be forced t o lower prices of homes to meet t he market demand. Depending on the income bracket, this could mean a plunge in property prices and allow most of t he 80% of purchasers purchase homes without having t o incur debt . Banking inst itut ions would also lose out on int erest income and find ways to eliminate int erest from t heir transactions in order to woo consumers. This may seem far-fetched, but if every single person bans together to combat int erest, this could cert ainly be a possibilit y in t he future it j ust has t o t ake a few t o st art the ball rolling, and that is an obligat ion upon all of us. Undebting Ourselves: Plan, W ork Hard and Ask God for Help There are ways to avoid debt , or at least, curtail the amount of debt one can manage. Strictly separat ing needs from want s, with discipline and brut al honest y, helps us reduce t he risk of going int o large amount of debt . I t is possible to be free of the dangers of debt. But it takes sincere intentions, determ ination and prayer

As for necessit ies, it is st rongly encouraged t o seek non-int erest based forms of financing. Whether it is t hrough t rue I slamic financing inst it ut ions or borrowing from friends and family wit h st rong-willed int entions t o pay back, int erest-free debt could be a reality. Of course, it is best t o ask those who hold the same beliefs about debt . Prophet Muhammad says: "I f anyone would like Allah to save him from t he hardships of t he Day of Resurrect ion, he should give more t ime t o his debtor who is short of money, or remit his debt alt oget her." (Muslim) Finding a loaner who believes in t his makes borrowing less burdensome, but t his does not absolve t he need for strict repayment: "The one who t akes peoples wealt h intending to pay it back, Allah will pay it back for him, and the one who t akes it int ending t o dest roy it , Allah will destroy him. (Al-Bukhari) Allah requires us t o work hard (in a halal manner) in order t o repay debt and always to make dua t o Him for guidance and st rengt h in order for us t o relinquish our debt on eart h. Prophet Muhammad entered the mosque and saw t he companion Abu Umamah. He said: "O Abu Umamah, why do I see you sit ting in t he mosque when it is not t he time for prayer? He said: Worries and debt s, O Messenger of Allah. The Prophet said: Shall I not teach you some words which, if you say them, Allah will t ake away your worries and pay off your debt s? He said: Yes, O Messenger of Allah. He said: Say, morning and evening: O Allah, I seek refuge with You from worry and grief, and I seek refuge wit h You from incapacity and laziness, and I seek refuge wit h You from cowardice and miserliness, and I seek refuge with You from being heavily in debt and from being overcome by men." Abu Umamah said; I did t hat , and Allah t ook away my worry and paid off my debt. (At Tirmidhi) I t is possible t o be free of the dangers of debt . But it takes sincere int ent ions, determinat ion and prayer t o prevent going int o debt in t he first place. Alt hough borrowing is allowed, there is a grand obligat ion t o be steadfast in repayments and only borrow from t hose who have similar beliefs t hose who are st ringent ly aware of t he dangers of riba and t hose who strongly believe in helping those who are financially in need.

R e l a t e d Lin k s: I slam ic Econ om y & So cial Ju st ice ( Fo ld er ) Liv in g a Hap p y Lif e w it h a St r on g Fait h ( Fo ld er ) Keep Gu ar d o f Yo u r Ow n Self For Th o se W h o Ref lect Fin d in g I slam Bet w een New Z ealan d an d Jap an Mar ia Z ain is f r eela n ce w r it er b y n ig h t an d a h o m esch oo lin g m ot h er o f f ou r b y d ay . Sh e cu r r en t ly w r it es f o r an asso r t m en t of p u b licat ion s b u t h as a w ish t o d ed icat e m o r e of h er t im e t o ch a r it a b le w or k , w h ile ch am p io n in g t h e m essag e o f I slam t h r o u g h h er w o r k .