IN THE NAME OF ALLAH THE MOST GRACIOUS, THE MOST MERCIFUL
Many people are in debt today. In a so-called rich country like Singapore, everyone seems to be rich on the surface, but when you scratch the surface, you find that many are living on loans due to ostentatious purchase of properties, cars, expensive jewelleries, etc. Everyone wants to show off that they are “successful” in society by flaunting their assets. Some even take loans to study overseas and fulfil their dreams. As a result, many people are in debt especially with the banks and other lenders.
Allah Warned us about the dunya:
اعلَموا أَنَّمَا الحَياةُ الدُّنيا لَعِبٌ وَلَهوٌ وَزينَةٌ وَتَفاخُرٌ بَينَكُم وَتَكاثُرٌ فِي الأَموالِ وَالأَولادِ ۖ كَمَثَلِ غَيثٍ أَعجَبَ الكُفّارَ نَباتُهُ ثُمَّ يَهيجُ فَتَراهُ مُصفَرًّا ثُمَّ يَكونُ حُطامًا ۖ وَفِي الآخِرَةِ عَذابٌ شَديدٌ وَمَغفِرَةٌ مِنَ اللَّهِ وَرِضوانٌ ۚ وَمَا الحَياةُ الدُّنيا إِلّا مَتاعُ الغُرورِ
Know that the life of this world is only play and amusement, pomp and mutual boasting among you, and rivalry in respect of wealth and children, as the likeness of vegetation after rain, thereof the growth is pleasing to the tiller; afterwards it dries up and you see it turning yellow; then it becomes straw. But in the Hereafter (there is) a severe torment (for the disbelievers, evil-doers), and (there is) Forgiveness from Allah and (His) Good Pleasure (for the believers, good-doers), whereas the life of this world is only a deceiving enjoyment. 57: 20
To make matters worse, many Muslims even take this issue on debt lightly, whereas many hadiths warned us about the seriousness of debt.
THE ISLAMIC PERPECTIVE ON DEBT
Islam does not prohibit debt; it recognises the fact that people may face circumstances that necessitate borrowing. However, it emphasises
- caution,
- responsibility, and most importantly,
- the intention and effort to repay the debt promptly.
One of the foundational elements in Islamic financial ethics is the prohibition of ‘Riba’ (usury or interest). This reflects, among many other things, the Islamic principle of social justice, ensuring that the burden of risk is not disproportionately placed on the borrower and preventing exploitative lending practices. Here, the Shariah protects the borrowers and debtors. The Shariah encourages lenders to go easy with debtors, and in fact, Shariah promotes helping those struggling with interest-free loans as well as grants.
PROMPT PAYMENT
Shariah is a perfect balance. Whilst it has guidance addressed to the creditor to guide their conduct, Shariah also protects creditors and lenders, and has guidance addressed to borrowers and debtors. The following guidance shows how Shariah balances the rights and ensures everyone’s rights are upheld.
The virtues of repaying debts promptly are emphasised throughout the teachings of the Prophet (peace and blessings of Allah be upon him). Paying off debt is a virtue and a means of attaining Allah’s reward and forgiveness. It is a way of fulfilling one’s duty and honouring one’s trust. It is also a way of expressing gratitude and kindness to the creditor who helped the debtor in his time of need.
WHAT DID ALLAH SAY ABOUT TAKING DEBT IN THE QUR’AN?
Surah 2 verse 282 – the longest verse in the Qur’an
Notes of verse:
A: All contracts of debt should be recorded. It is incumbent upon a Muslim to act as mediator, witness, or scribe when called upon to do so. All the parties to a contract of debt should safeguard themselves with full awareness of Allah’s laws, a reminder which has been repeated twice in this verse, because Allah knows all things and what He teaches us is for our own good in the larger interest of human society. If we do not follow His guidance then surely we transgress. The laws prescribed in this verse develop and maintain a progressive, welfare-oriented, civilized social order..
B:Every contract of debt should be written down by a scribe with fairness. He who owes the debt should dictate without diminishing anything. If he is unsound or weak in understanding then his guardian should dictate with fairness.
C:Two witnesses should be chosen to witness the written contract. If there are not two men, then one man and two women must be called in to witness, so that if one woman errs, the second may remind the other..
D:If the transaction is for ready merchandise which is given and taken from hand to hand, then there is no blame on any party in not writing it down.
The Prophet’s Attitude Towards Incurring Debt
The Prophet did take loans from time to time. But in general he was wary of it. He used to make a lot of
dua against incurring overburdening debts.
Anas ibn Malik said, “The Prophet, may Allah bless him and grant him peace, used to often say, ‘O Allah, I seek refuge with You from worry, sorrow, incapacity, laziness, cowardice, avarice, being overburdened by debt and being overcome by other men.’” [Al-Adab Al-Mufrad 801, sunnah.com]
Effect of Debt on Character
Aisha (radiyallahu anha) asked the Prophet why he made so much dua against incurring debts. He replied, ‘Whoever gets into debt speaks and lies, and makes a promise and breaks it.’” [Sunan an-Nasa’i 5454, sunnah.com]
Also, the creditor’s attitude often becomes harsh towards the debtor if the latter delays in paying off the loan. Although the creditor may be sometimes justified in doing so, it still has a bad effect on his character, making him tough.
This is indeed very true and observable in most business transactions taking place around us. Therefore, in order to safeguard our characters, it is best not to take loans.
The Prophet’s Attitude Towards Giving Loans
It is encouraged to give loans to the needy. Abu Huraira reported: The Messenger of Allah, peace and blessings be upon him, said, “A man would give loans to the people and he would say to his servant: If the debtor is in hardship you should forgive the debt that perhaps Allah will relieve us. So when he met Allah, then Allah relieved him.” [Sahih Bukhari 3293, Sahih Muslim 1562, dailyhadithonline.com]
It was narrated from Buraidah Al-Aslami that the Prophet (ﷺ) said: “Whoever gives respite to one in difficulty, he will have (the reward of) an act of charity for each day. Whoever gives him respite after payment becomes due, will have (the reward of) an act of charity equal to (the amount of the loan) for each day.” [Sunan Ibn Majah Book 15, Hadith 2511, sunnah.com]
Delaying to Pay Debt
Unless one is unable, it is very reprehensible delaying to pay one’s debts. Sheikh ‘Abd al-Hamid Kishk says about this, “A debtor, on the other hand, is eager for wealth at the time of his need but then lazy when it comes to repaying it, imagining this to be too much of a strain on him and fearing the poverty and need he was in which made him resort to borrowing in the first place.” (121)
The Prophet (ﷺ) said, “Procrastination (delay) in paying debts by a wealthy man is injustice. So, if your debt is transferred from your debtor to a rich debtor, you should agree.” [Sahih al-Bukhari 2287, sunnah.com]
It is even permissible to beg when one is in heavy debt. The Prophet said,
“Begging is not lawful except for one of three cases: a man who is in heavy debt, so begging is permissible for him until he pays it, after which he must stop….” [Sahih Muslim 1044, dailyhadithonline.com]
Effect of Debt after Death
The importance of paying off debts can be understood from the fact that after death, first of all the debts need to be cleared, and then only can the estate be divided among inheritors. Allah (swt) says (translation of the meaning),
فَإِن كانَ لَهُ إِخوَةٌ فَلِأُمِّهِ السُّدُسُ ۚ مِن بَعدِ وَصِيَّةٍ يوصي بِها أَو دَينٍ
”If you have brothers or sisters, your mother receives a sixth, after any bequest you make or any debts.” (4: 11)
The Prophet (ﷺ) said, “The soul of the deceased believer remains pending on account of the debt till it (the debt) is repayed.” [At-Tirmidhi, Book 7, Hadith 49, sunnah.com]
Making It Easy for the Debtor
It is praiseworthy and highly rewarding to lift a burden from one’s brother, and debt is definitely a huge burden as can be seen from the above ahadith.
The Messenger of Allah said, “A man would give loans to the people and he would say to his servant: If the debtor is in hardship you should forgive the debt that perhaps Allah will relieve us. So when he met Allah, then Allah relieved him.” [Sahih Bukhari 3293, Sahih Muslim 1562]
Paying More During Repayment of Debt
The Prophet would pay more than the due amount while repaying debts. Narrated Jabir ibn Abdullah: The Prophet (ﷺ) owed me a debt and gave me something extra when he paid it. [Sunan Abi Dawud 3347]
Paying extra while repaying debt does not fall under
riba, since it is done without the creditor asking for it, and it is done out of kindness and goodwill of the debtor.
Some in debt is one of the 8 criteria of one who is eligible to receive zakat
إِنَّمَا الصَّدَقاتُ لِلفُقَراءِ وَالمَساكينِ وَالعامِلينَ عَلَيها وَالمُؤَلَّفَةِ قُلوبُهُم وَفِي الرِّقابِ وَالغارِمينَ وَفي سَبيلِ اللَّهِ وَابنِ السَّبيلِ ۖ فَريضَةً مِنَ اللَّهِ ۗ وَاللَّهُ عَليمٌ حَكيمٌ
As-Sadaqat (here it means
Zakat) are only for the
Fuqara’ (poor), and
Al-Masakin (the poor) and those employed to collect (the funds); and for to attract the hearts of those who have been inclined (towards Islam); and to free the captives; and for those in debt; and for Allah’s Cause (i.e. for
Mujahidun – those fighting in the holy wars), and for the wayfarer (a traveller who is cut off from everything); a duty imposed by Allah. And Allah is All-Knower, All-Wise. 9: 60
SOME HADITHS ON DEBT
The Prophet Muhammad (peace upon him) said, “the best among you are those best in paying off debt” (reported by Muslim) and “procrastination (delay) in repaying debts by a wealthy person is injustice” (reported by Bukhari). The debtor is a prisoner, as the Prophet (peace and blessings be upon him) said, “Your companion is being detained by his debt.” (Abu Dawud)
It was narrated from ‘Aa’ishah (may Allah be pleased with her) that the Prophet (peace and blessings of Allah be upon him) used to say in his prayer: “Allahumma inni a’oodhi bika min al-ma’tham wa’l-maghram (O Allah, I seek refuge with You from sin and heavy debt).” Someone said to him: “How often you seek refuge from heavy debt!” He said: “When a man gets into debt, he speak and tells lies, and he makes a promise and breaks it.” Narrated by al-Bukhaari (832) and Muslim (589).
Al-Nasaa’i (4605) narrated that Muhammad ibn Jahsh (may Allah be pleased with him) said:
We were sitting with the Messenger of Allah (peace and blessings of Allah be upon him) when he raised his head towards the sky, then he put his palm on his forehead and said: “Subhaan-Allah! What a strict issue has been revealed to me!” We remained silent and were afraid. The following morning I asked him, “O Messenger of Allah, what is this strict issue that has been revealed?” He said, “By the One in Whose hand is my soul, if a man were killed in battle for the sake of Allah, then brought back to life, then killed and brought back to life again, then killed, and he owed a debt, he would not enter Paradise until his debt was paid off.” Classed as hasan by al-Albaani in Saheeh al-Nasaa’i, 4367.
The Prophet (peace and blessings of Allah be upon him) refrained from offering the funeral prayer for one who had died owing two dinars, until Abu Qataadah (may Allah be pleased with him) promised to pay it off for him. When he saw him the following day and said, I have paid it off, the Prophet (peace and blessings of Allah be upon him) said: “Now his skin has become cool for him.” Musnad Ahmad (3/629); classed as hasan by al-Nawawi in al-Khalaasah (2/931) and by Ibn Muflih in al-Adaab al-Shar’iyyah (1/104).
Al-Haafiz Ibn Hajar (may Allah have mercy on him) said in Fath al-Bari (4/547):
This hadeeth indicates how difficult the issue of debt is, and that it should not be undertaken except in cases of necessity. End quote.
It was narrated from Thawbaan (may Allah be pleased with him) that the Messenger of Allah (peace and blessings of Allah be upon him) said:
“Whoever dies free from three things – arrogance, cheating and debt – will enter Paradise.”
Narrated by al-Tirmidhi (1572); classed as saheeh by al-Albaani in Saheeh al-Tirmidhi.
It was narrated that Abu Hurayrah said: The Messenger of Allah (peace and blessings of Allah be upon him) said:
“The soul of the believer is suspended because of his debt until it is paid off.” Narrated by al-Tirmidhi (1078).
Al-Mubaarakfoori said in Tuhfat al-Ahwadhi (4/164):
The words “the soul of the believer is suspended” – al-Suyooti said: i.e., it is detained and kept from reaching its noble destination. Al-‘Iraaqi said: i.e., no judgement is passed as to whether it will be saved or doomed until it is determined whether his debt will be paid off or not. End quote.
It was also narrated that many of the salaf warned against debt:
It was narrated that ‘Umar ibn al-Khattaab (may Allah be pleased with him) said:
Beware of debt, for it starts with worry and it ends with war. Narrated by Maalik in al-Muwatta’ (2/770).
In Musannaf ‘Abd al-Razzaaq (3/57) it says:
Ibn ‘Umar (may Allah be pleased with him) said:
O Humraan, fear Allah and do not die in debt, lest it be taken from your good deeds when there will be no dinars and no dirhams.
NEGATIVE CONSEQUENCES OF DEBT
These stern warnings about debt only came because of the negative consequences to which it leads both on an individual level and on a community level.
With regard to the personal level, al-Qurtubi said in al-Jaami’ li Ahkam al-Quran (3/417):
Our scholars said: It is a disgrace and a humiliation because it preoccupies the mind and makes one worried about paying it off, and makes one feel humiliated before the lender when meeting him, and feeling that he is doing one a favour when accepting a delay in payment. Perhaps he may promise himself that he will pay it off then break that promise, or speak to the lender and lie to him, or swear an oath to him then break it, and so on. Moreover, he may die without having paid off the debt so he will be held hostage because of it, as the Prophet (peace and blessings of Allah be upon him) said: “The soul of the believer is held hostage by his debt in his grave until it is paid off.” Narrated by al-Tirmidhi, 1078. All of that undermines one’s religious commitment.
With regard to the community level, specialists have described the negative consequences and the danger it poses to the economy, for example:
1-Desire for immediate gratification with no thought of the future
2-Lack of responsibility and self-reliance
3-Poor distribution of wealth
In order to understand these negative consequences better, please see the study by Shaykh Saami al-Suwaylim entitled Mawqif al-Sharee’ah al-Islamiyyah min al-Dayn (6-11).
CONDITIONS TO MEET BEFORE WE DECIDE TO TAKE A LOAN/ BE IN DEBT
the scholars have stipulated three conditions for debt to be permissible:
1-The borrower should be determined to repay it.
2-It should be known or thought most likely that he is able to repay it,
3-It should be for something that is permissible according to sharee’ah.
Ibn ‘Abd al-Barr said in al-Tamheed (23/238):
The debt for which a person will be kept out of Paradise – and Allah knows best – is that for which he left behind enough to pay it off but he did not leave instructions to that effect, or he was able to pay it off but did not do so, or he took the loan for some unlawful or extravagant matter and died without having paid it off.
As for the one who took a loan for something lawful because he was poor, and he died without leaving behind anything to pay it off, Allah will not keep him from Paradise because of it, in sha Allah. End quote.
ALLAH’S MERCY
So long as you have taken on a debt so that you can fulfil the duty of helping your husband and family to pay for living expenses, you will be rewarded by Allah for this good deed. I ask Allah to reward you greatly for that. Remember that He will help you to pay off this debt. The Prophet (peace and blessings of Allah be upon him) said: “The one who takes people’s wealth intending to pay it back, Allah will pay it back for him, and the one who takes it intending to destroy it, Allah will destroy him.” Narrated by al-Bukhaari (2387).
DU’A
Seek help with that by working and striving hard to pay off the debt, and by putting your trust in Allah, and praying to Him to make it easy for you to pay off your debt.
In the Sunnah there are a number of du’aa’s which specifically seek the help of Allah in praying off debts. They are:
1 – It was narrated that Suhayl said: Abu Saalih used to tell us, when one of us wanted to sleep, to lie down on his right side and say:
“Allahumma Rabb al-samawaati wa’l-ard wa Rabb al-‘arsh il-‘azeem, Rabbaanaa wa Rabba kulli shay’in, Faaliq al-habb wa’l-nawa wa munzil al-Tawraati wa’l-Injeeli wa’l-Furqaan, a’oodhu bika min sharri kulli shay’in anta aakhidhun bi naasiyatihi. Allahumma anta al-awwal fa laysa qablaka shay’un, wa anta al-aakhir fa laysa ba’daka shay’un, wa anta al-zaahir fa laysa fawqaka shay’un wa anta al-baatin fa laysa doonaka shay’un. Iqdi ‘annaa al-dayna wa aghninaa min al-faqri (O Allah, Lord of the seven heavens and the exalted Throne, our Lord and Lord of all things, splitter of the seed and the date-stone, Revealer of the Tawraat and the Injeel and the Furqaan [Quran], I seek refuge in You from the evil of all things You shall seize by the forelock [have total mastery over]. O Allah, You are the First so there is nothing before You, and You are the Last so there is nothing after You. You are al-Zaahir [the greatest and highest] so there is nothing above You, and You are al-Baatin [aware of the subtlest secrets] so there is nothing closer than You. Settle our debt for us and spare us from poverty).”
He narrated that from Abu Hurayrah, from the Prophet (peace and blessings of Allah be upon him). Narrated by Muslim (2713).
2 – It was narrated from ‘Ali (may Allah be pleased with him) that a mukaatib (slave who had entered into a contract of manumission) came to him and said: “I am unable to pay off my manumission; help me.” He said: “Shall I not tell you some words which the Messenger of Allah (peace and blessings of Allah be upon him) taught me? And if you have debt like the mountain of Seer, Allah will pay it off for you. He said: ‘Say:
اللَّهُمَّ اكْفِنِي بِحَلاَلِكَ عَنْ حَرَامِكَ وَأَغْنِنِي بِفَضْلِكَ عَمَّنْ سِوَاكَ
Allahumma akfini bi halaalika ‘an haraamika wa aghnini bi fadlika ‘amman siwaaka (O Allah, suffice me with what You have permitted so that that I have no need of that which You have forbidden, and make me independent of means by Your bounty so that I have no need of anyone besides You).’”
Narrated by al-Tirmidhi (2563) who said: This is a hasan ghareeb hadeeth. It was also classed as hasan by al-Albaani in Saheeh al-Tirmidhi.
3 – It was narrated that Abu Sa’eed al-Khudri (may Allah be pleased with him) said:
The Messenger of Allah (peace and blessings of Allah be upon him) entered the mosque and saw an Ansaari man whose name was Abu Umaamah. He said: “O Abu Umaamah, why do I see you sitting in the mosque when it is not the time for prayer? He said: Worries and debts, O Messenger of Allah. He said: “Shall I not teach you some words which, if you say them, Allah will take away your worries and pay off your debts?” He said: Yes, O Messenger of Allah. He said:
“Say, morning and evening, ‘
اللَّهُمَّ إِنِّي أَعُوذُ بِكَ مِنَ الْهَمِّ وَالْحَزَنِ، وَالْعَجْزِ وَالْكَسَلِ، وَالْبُخْلِ وَالْجُبْنِ، وَضَلَعِ الدَّيْنِ، وَغَلَبَةِ الرِّجَالِ
“Allahumma 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 (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 indebt and from being overcome by men).”
He said; I did that, and Allah took away my worry and paid off my debt.
Narrated by Abu Dawood (1555). Its isnaad includes Ghassaan ibn ‘Awf; al-Dhahabi said: he is not strong. Hence Shaykh al-Albaani classed the hadeeth as weak in Da’eef Abi Dawood. But the du’aa’ mentioned – “Allahumma inni a’oodhu bika min al-hammi wa’l-hazani…” – is proven in al-Saheehayn in a report other than this story of Abu Umaamah.
