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Showing posts with label Debt. Show all posts
Showing posts with label Debt. Show all posts

Thursday, January 20, 2011

Using credit cards is haraam (impermissible), even if you pay up within the time limit

Using credit cards is haraam even if you pay up within the time limit

Q. I heard that using credit cards is haraam, but if I am sure that I am going to pay the bank within the time limit, so the bank will not charge any interest, is this also regarded as haraam?.

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Praise be to Allaah.  

What you have heard about credit cards being haraam is correct. That has already been discussed in question no. (13735).

Using them is haraam even if the user is certain that he will pay the bank within the time limit.

It has already been explained in the answer to the question mentioned that they are haraam because the bank lends money to the user in return for interest, and this interest is the price of the annual subscription to the credit card, as well as other interest charges which are to be paid to the bank if the user is late in paying.

The cost of the card is a kind of riba which the user pays to the bank, and this riba is paid by the user whether he pays on time or not

Also, the user enters into a contract with the bank which means that he is obliged to pay interest if he delays payment. This is also haraam, because it is not permissible for a Muslim to commit himself to doing something that Allaah has forbidden.

The user may think that he can pay up on time, but then something happens to him that prevents him from doing so, so he pays riba to the bank.

Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) said concerning this kind of contract:
A contract of this type is not permissible, because it involves riba which is the price of the card, and it also means committing to pay interest if payment is delayed.

In another fatwa he said:
This transaction is haraam, because the one who enters into it commits himself to paying riba if he does not pay on time. This is an invalid commitment, even if he believes or thinks it most likely that he will pay it before the time is up, because circumstances may change and he may not be able to pay it off. This is a matter that is in the future, and no one knows what will happen to him in the future. So dealings of this type are haraam.

And Allaah knows best.

Islam Q&A

Tuesday, January 18, 2011

Poverty and its negative effects, and means of eliminating it in Islam

Poverty and its negative effects, and means of eliminating it in Islam

Q. How can Islam fight poverty?
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Praise be to Allaah. 

Firstly: 

Poverty is one of the calamities that Allaah has decreed should happen, either to a specific person or a family or a society. Poverty has negative effects on people’s beliefs and conduct. Immoral behaviour becomes widespread to a large extent because of poverty, as a means of meeting people’s needs, so theft, murder, zina and sale of haraam things become widespread. 
Undoubtedly these things have a negative effect on individuals and societies. Allaah tells us that some of the mushrikeen used to kill their children, the apples of their eyes, either because of the poverty in which they were living or for fear of poverty that might befall them. Allaah says of the first case (interpretation of the meaning): 
“kill not your children because of poverty — We provide sustenance for you and for them”
[al-An’aam 6:151] 

And He says of the second case (interpretation of the meaning): 
“And kill not your children for fear of poverty. We shall provide for them as well as for you. Surely, the killing of them is a great sin”
[al-Isra’ 17:31] 

In al-Saheehayn there is narrated the story of a woman of the Children of Israel who, when she needed money and felt under pressure, she could not find anyone but her paternal cousin who wanted to have his way with her in return for giving her money. Then Allaah saved her from that after she reminded him of Allaah and told him to fear Him. 

Whatever the case, it is well known that poverty leads to crimes and corruption. Many nations suffer from it and are looking for solutions to this problem, but to no avail, and there is no solution except in Islam, which brought rulings for all people until the Hour begins. 

Secondly: 

The means that have been prescribed by Islam to solve the problem of poverty and combat it are as follows: 

1 – Teaching people to believe truly that provision comes from Allaah and that He is the Provider (al-Razzaaq), and every calamity that Allaah decrees is for a reason, and that the poor Muslim should be patient in bearing his calamity and strive to relieve himself and his family of poverty

Allaah says (interpretation of the meaning): 
“Verily, Allaah is the All‑Provider, Owner of Power, the Most Strong”
[al-Dhaariyaat 51:58] 

“And no moving (living) creature is there on earth but its provision is due from Allaah. And He knows its dwelling place and its deposit (in the uterus or grave). All is in a Clear Book (Al‑Lawh Al‑Mahfooz — the Book of Decrees with Allaah)”
[Hood 11:6] 

“Who is he that can provide for you if He should withhold His provision? Nay, but they continue to be in pride, and (they) flee (from the truth)”
[al-Mulk 67:21] 

“And indeed We have honoured the Children of Adam, and We have carried them on land and sea, and have provided them with At‑Tayyibaat (lawful good things), and have preferred them above many of those whom We have created with a marked preferment”
[al-Isra’ 17:70] 

It is because of these beliefs that a man should bear with patience whatever befalls him of the calamity of poverty, and turn to Allaah alone in seeking provision, and accept the decree of Allaah, and strive to earn a living. 

It was narrated that Suhayb al-Roomi (may Allaah be pleased with him) said: The Messenger of Allaah (peace and blessings of Allaah be upon him) said: 
“How wonderful is the situation of the believer, for all his affairs are good. If something good happens to him, he gives thanks for it and that is good for him; if something bad happens to him, he bears it with patience, and that is good for him.”
[Narrated by Muslim (2999)]
We can understand the effect of this belief on the Muslims by looking at what happens to others.
In Japan – for example – in 2003 thirty-three thousand people committed suicide! And one of the main reasons for that was unemployment. In a report on the BBC website on 1/9/2004 they said: 
Official statistics show that thirty-three thousand people killed themselves last year in Japan. Japanese officials say that one of the reasons for this rise in the suicide rate is the economic recession that Japan is facing, which is regarded as the worst in fifty years. This has led to an unprecedented rise in unemployment as well as a rise in cases of depression, especially among middle-aged men. [End quote]
Allaah says (interpretation of the meaning): 
“Truly, your Lord enlarges the provision for whom He wills and straitens (for whom He wills). Verily, He is Ever All‑Knower, All‑Seer of His slaves”
[al-Isra’ 17:30]. 

Ibn Katheer (may Allaah have mercy on him) said: 
The words of Allaah “Truly, your Lord enlarges the provision for whom He wills and straitens (for whom He wills)” tell us that He, may He be exalted, is the Provider, the Withholder and the Bestower, Who deals with His creation as He wills. He grants independence of means to whomsoever He wills and makes poor whomsoever He wills, with wisdom in that. Hence He says “Verily, He is Ever All‑Knower, All‑Seer of His slaves” i.e., He knows and sees who deserves to be rich and who deserves to be poor. 
In some cases wealth may be a means of letting people get carried away in sin and poverty may be a punishment. We seek refuge with Allaah from both. 
Tafseer Ibn Katheer (5/71).  

2 – Seeking refuge with Allaah from poverty
The Sunnah relates to us what the Prophet (peace and blessings of Allaah be upon him) used to do and what he taught his ummah to do, which is seeking refuge with Allaah from poverty, because of the effect that it has on a person, his family and his society.   

It was narrated that Muslim ibn Abi Bakrah said: My father used to say following every prayer: Allaahumma inni a’oodhu bika min al-kufri wa’l-faqri wa ‘adhaab il-qabr (O Allaah, I seek refuge with You from disbelief, poverty and the torment of the grave), and I used to say them too. My father said: O my son, where did you get this from? I said: From you. He said: The Messenger of Allaah (peace and blessings of Allaah be upon him) used to say that following every prayer. 
[Narrated by al-Nasaa’i (1347); classed as saheeh by al-Albaani in Saheeh al-Nasaa’i]

It was narrated from ‘Aa’ishah (may Allaah be pleased with her) that the Prophet (peace and blessings of Allaah be upon him) used to say in his prayer: “Allaahumma inni a’oodhi bika min al-ma’tham wa’l-maghram (O Allaah, 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)]

3 – Encouragement to work and earn a living, and to travel in the land to seek provision

Allaah says (interpretation of the meaning): 
“He it is Who has made the earth subservient to you (i.e. easy for you to walk, to live and to do agriculture on it); so walk in the path thereof and eat of His provision. And to Him will be the Resurrection”
[al-Mulk 67:15] 

“Then when the (Jumu‘ah) Salaah (prayer) is ended, you may disperse through the land, and seek the Bounty of Allaah (by working), and remember Allaah much, that you may be successful”
[al-Jumu’ah 63:10] 

It was narrated from al-Miqdaam (may Allaah be pleased with him) that the Messenger of Allaah (peace and blessings of Allaah be upon him) said: “No one ever eats any food better than that which he has earned with his own hands. The Prophet of Allaah Dawood (peace be upon him) ate that which he earned with his own hands.” [Narrated by al-Bukhaari (1966)]

It was narrated from al-Zubayr ibn al-‘Awwaam (may Allaah be pleased with him) that the Prophet (peace and blessings of Allaah be upon him) said: “If one of you were to take a rope and bring firewood on his back and sell it, thus preserving his dignity, that is better for him than asking of people who may give to him or withhold from him.” [Narrated by al-Bukhaari (1402)]

4 – Making zakaah obligatory on the wealth of the rich 

Allaah has granted the poor a share of zakaah, which is to be given to the poor to keep, and is to be given until he becomes independent of means and is no longer poor. 

Allaah says (interpretation of the meaning): 
“As-Sadaqaat (here it means Zakaah) are only for the Fuqaraa’ (poor), and Al‑Masaakeen (the poor) and those employed to collect (the funds); and to attract the hearts of those who have been inclined (towards Islam); and to free the captives; and for those in debt; and for Allaah’s Cause (i.e. for Mujaahidoon — those fighting in a holy battle), and for the wayfarer (a traveller who is cut off from everything); a duty imposed by Allaah. And Allaah is All-Knower, All-Wise”
[al-Tawbah 9:60] 

“And those in whose wealth there is a recognised right
25. For the beggar who asks, and for the unlucky who has lost his property and wealth (and his means of living has been straitened)”
[al-Ma’aarij 70:24, 25]. 

5 – Encouragement to give charity, set up waqfs and sponsor orphans and widows 

Allaah says (interpretation of the meaning): 
“So keep your duty to Allaah and fear Him as much as you can; listen and obey, and spend in charity; that is better for yourselves. And whosoever is saved from his own covetousness, then they are the successful ones”
[al-Taghaabun 64:16] 

“and whatsoever you spend of anything (in Allaah’s Cause), He will replace it. And He is the Best of providers”
[Saba’ 34:39] 

“And whatever good you send before you for yourselves (i.e. Nawaafil — non‑obligatory acts of worship: prayers, charity, fasting, Hajj and ‘Umrah), you will certainly find it with Allaah, better and greater in reward”
[al-Muzzammil 73:20] 

It was narrated that ‘Adiyy ibn Haatim said: I heard the Prophet (peace and blessings of Allaah be upon him) say: “Whoever among you can shield himself against the Fire, even with half a date, let him do so.” [Narrated by al-Bukhaari (1347) and Muslim (1016)]

It was narrated that Sahl ibn Sa’d said: The Messenger of Allaah (peace and blessings of Allaah be upon him) said: “I and the one who sponsors an orphan will be like this in Paradise” – and he gestured with his forefinger and middle finger, holding them slightly apart. [Narrated by al-Bukhaari (4998).  Muslim (2983) narrated a similar report from the hadeeth of Abu Hurayrah]

It was narrated that Abu Hurayrah said: The Prophet (peace and blessings of Allaah be upon him) said: “The one who strives to help widows and the poor is like the one who strives in jihad for the sake of Allaah and the one who prays at night and the one who fasts during the day.” [Narrated by al-Bukhaari (5038) and Muslim (2982)]

6 – Prohibition on riba (usury), gambling and deceit in selling 

Allaah says (interpretation of the meaning): 
“O you who believe! Fear Allaah and give up what remains (due to you) from Ribaa (from now onward) if you are (really) believers.
279. And if you do not do it, then take a notice of war from Allaah and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums)”
[al-Baqarah 2:278-279] 

“O you who believe! Intoxicants (all kinds of alcoholic drinks), and gambling, and Al‑Ansaab (stone altars for sacrifices to idols etc) and Al‑Azlaam (arrows for seeking luck or decision) are an abomination of Shaytaan’s (Satan’s) handiwork. So avoid (strictly all) that (abomination) in order that you may be successful”
[al-Maa'idah 5:90] 

It was narrated from Abu Hurayrah that the Messenger of Allaah (peace and blessings of Allaah be upon him) passed by a pile of foodstuff; he put his hand in it and found that it had gotten wet. He said, “What is this, O seller of the foodstuff?” He said: It got rained on, O Messenger of Allaah. He said: “Why don’t you put it on top of the food so that people can see it? Whoever deceives (people) does not belong to me.” [Narrated by Muslim (102)]

That is because if these things are done and become widespread among people, it means that some are taking people’s wealth unlawfully, and people may lose all their wealth because of them. Hence the texts clearly forbid them. 

7 – Encouragement to help the needy and support the weak 

It was narrated that al-Nu’maan ibn Basheer said: The Messenger of Allaah (peace and blessings of Allaah be upon him) said: “The likeness of the believers in their mutual love, mercy and compassion is that of the body; when one part of it is in pain, the rest of the body joins it in restlessness and fever.” [Narrated by al-Bukhaari (5665) and Muslim (2586)]

It was narrated from Ibn ‘Abbaas (may Allaah be pleased with him) that the Messenger of Allaah (peace and blessings of Allaah be upon him) said: “He is not a Muslim who eats his fill when his neighbour goes hungry.” [Narrated by al-Bayhaqi in al-Shu’ab (9251) and by others. Classed as hasan by al-Albaani]

In Muwatta’ al-Imam Maalik (1742) it is narrated from Yahya ibn Sa’eed that ‘Umar ibn al-Khattaab met Jaabir ibn ‘Abd-Allaah who was carrying some meat with him. He said: What is this? 
He said: O Ameer al-Mu’mineen, we desired meat so I bought some meat for a dirham. 
‘Umar said: Would one of you want to fill his belly apart from his neighbour or his cousin? What don’t you pay heed to the verse “You received your good things in the life of the world, and you took your pleasure therein” [al-Ahqaaf 46:20]? 

Finally: 

This is a brief look at poverty, which points to some of its bad effects. The Muslim knows that poverty and richness, and whether things are given to one or withheld, are all subject to the decree of Allaah. So he bears hardships with patience when they come, and he thanks Allaah, may He be exalted, for good times when he finds them. But he is required to work and seek to earn a living so as to relieve himself and his family of poverty. But if someone is unable to do that because of health reasons or problems in his land, then Islam relieves him of poverty by means of zakaah and charity that are given by the rich. This is the share of their wealth that the poor are entitled to. 

And Allaah knows best.
Islam Q&A
Ref: http://islamqa.com/en/ref/95340/

Seriousness of debt

Seriousness of debt

Praise be to Allaah.

The fuqaha’ define dayn (debt) as an obligation to be fulfilled, as it says in al-Mawsoo’ah al-Fiqhiyyah (21/102). The linguistic meaning of the word dayn (debt) in Arabic has to do with submission and humiliation. The connection between the shar’i meaning and the linguistic meaning is clear.
The debtor is a prisoner, as the Prophet (peace and blessings of Allaah be upon him) said: “Your companion is being detained by his debt.” [Narrated by Abu Dawood, 3341; classed as hasan by al-Albaani in Saheeh Abi Dawood.]

Islam takes the matter of debt very seriously and warns against it and urges the Muslim to avoid it as much as possible. 

It was narrated from ‘Aa’ishah (may Allaah be pleased with her) that the Prophet (peace and blessings of Allaah be upon him) used to say in his prayer: “Allaahumma inni a’oodhi bika min al-ma’tham wa’l-maghram (O Allaah, 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)]

It was narrated from Thawbaan (may Allaah be pleased with him) that the Messenger of Allaah (peace and blessings of Allaah 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 Allaah (peace and blessings of Allaah 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)]

It was also narrated that many of the salaf warned against debt. 

It was narrated that ‘Umar ibn al-Khattaab (may Allaah 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 Allaah be pleased with him) said: 
O Humraan, fear Allaah and do not die in debt, lest it be taken from your good deeds when there will be no dinars and no dirhams.

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 Ahkaam al-Qur’aan (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 Allaah 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).  

Based on the above, 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 Allaah 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, Allaah will not keep him from Paradise because of it, in sha Allaah. [End quote]

The Prophet (peace and blessings of Allaah be upon him) said: “The one who takes people’s wealth intending to pay it back, Allaah will pay it back for him, and the one who takes it intending to destroy it, Allaah will destroy him.” [Narrated by al-Bukhaari (2387)]

In the Sunnah there are a number of du’aa’s which specifically seek the help of Allaah 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: 

Allaahumma 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. Allaahumma 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 Allaah, 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 [Qur’aan], I seek refuge in You from the evil of all things You shall seize by the forelock [have total mastery over]. O Allaah, 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 Allaah be upon him). [Narrated by Muslim (2713)]

2 – It was narrated from ‘Ali (may Allaah 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 Allaah (peace and blessings of Allaah be upon him) taught me? And if you have debt like the mountain of Seer, Allaah will pay it off for you. He said: ‘Say: Allaahumma akfini bi halaalika ‘an haraamika wa aghnini bi fadlika ‘amman siwaaka (O Allaah, 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 Allaah be pleased with him) said:  
The Messenger of Allaah (peace and blessings of Allaah 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 Allaah. He said: “Shall I not teach you some words which, if you say them, Allaah will take away your worries and pay off your debts?” He said: Yes, O Messenger of Allaah. He said:
“Say, morning and evening, ‘“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 (O Allaah, 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).” 
He said; I did that, and Allaah 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 – “Allaahumma 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.

And Allaah knows best.
 
Islam Q&A