As per the Oxford dictionary ‘Debt’ is a sum of money that is owed or due. There are two scenarios in which a person would want to take on a debt: First: a person who had to take a debt for the sake of fulfilling life necessities such as obtaining food, dwelling, clothes, education, and it’s like. Second: a person who intentionally takes a debt to fulfill their carnal desire such as for entertainment, adornment, especially since then there is ample choice for taking loans these days.
Islam allows for a person to take on a debt to fulfill their life necessities, especially in matters of darooriyyaat (essentials). The Muslims are demanding to mutually aid one another, which includes providing assistance, whether in the form of charity or loan, to alleviate the burden and fulfill the needs of their dependents. However, once due, the debtor has to pay back the amount as per the commitment. Prophet (SAW) said, “The believer’s soul is suspended by his debt until it is settled for him” (at-Tirmidhi: hasan).
Globally, the debt burden is increasing exponentially. On March 4th, 2016, one local newspaper in Malaysia (the country where I live now) reported that based on the results obtained from the Manulife Investor Sentiment Index (MISI) research, it was found that 68% of Malaysians are burdened with debt. This marked the highest record amongst eight Asian nations, namely the Philippines (41%), Singapore (33%), China and Taiwan (32%), Hong Kong (22%), Indonesia (21%), and Japan (15%). Statistics between 2010 until April 2015 in Malaysia indicated that from 107,000 individuals in declared bankrupt, a total of 23,484 of them are youths between the ages of 25 to 34 years old. A total of 1,469 youths below the age of 25 was declared bankrupt, while those between 35 to 44 years old were the highest at 37,888 individuals from the overall amount. In addition, there are also those that had borrowed money from family members, neighbors, and colleagues. Many promises and guarantees were given, but when the time came, they would deliberately delay their payment. Even more embarrassing is those that refused to pay back.
Back home, at the National level, India’s in the top 25 of the World’s Most Debt-Ridden Nations. As per the details on http://www.nationaldebtclocks.org/debtclock/india, Debt per citizen is 43,640 Rs. As reported in Indian Express ( published 28th Febuary, 2016), as on March 31, 2015, the Central government debt stood at Rs 59,07,316 crore, earnings (tax revenue) Rs 11,26,294 crore and GDP at Rs 1,24,88,205 crore. It means, India’s debt was 5.2 times its tax earnings and 0.47 times its national output or GDP. But it gets alarming when you see this as a percentage. While debt-to-GDP is at 47.1 per cent, debt-to-taxes is a whopping 524 per cent.
Recently, I came across a headline from Kashmir that a ‘Debt ridden’ man consumes poison inside the J&K Bank (Kashmir Observer, 2016). The new item explains a man reportedly overburdened with huge debt, Saturday, attempted suicide by consuming some poisonous substance inside the Naidyar Branch of Jammu and Kashmir Bank in Rainawari area. Such situations would be happening everywhere in the world, particularly in the present interest based lone systems.
In Islam, among the matters that must be expedited in this world is paying back the debt, aside from expediting the burial of the deceased and marrying off one’s daughter upon receiving eligible proposal. For the one that does not settle his debt when capable, not only it will result in a horrible outcome in this world but also in the Hereafter. Among them: Meeting Allah as a thief. Suhayb al-Khayr (ra) narrated that Rasulullah (saw) said: “Any man who takes out a loan, having resolved not to pay it back, will meet Allah as a thief” (ibn Maajah: hasan). Delaying the payment in settling one’s debt makes one an oppressor. Narrated Abu Hurayrah (ra) that Rasulullah (saw) said: “Procrastination (in paying a debt) by a rich person is oppression” (ibn Maajah: saheeh). It is considered as having committed a major sin. Narrated Abu Moosa al-Ash‘ari (ra): Rasulullah (saw) said: “After the grave sins, which Allah has prohibited, the greatest sin is that a man dies while he has debt due from him and does not leave anything to pay it off, and meets Him with it” (Abu Dawood: hasan). Will not be forgiven for this sin even if one dies as a martyr. On the authority of ‘Abdullah ibn ‘Amr (ra): Rasulullah (saw) said: “All the sins of a shaheed (martyr) are forgiven except debt” (Muslim) Rasulullah (saw) himself did not perform salaat al-janaazah (funeral prayer) on those that did not settle their debts.
In one hadeeth, Abu Hurayrah (ra) reported that when the body of a dead person was brought to Rasulullah (saw), he did not inquire about the deceased’s good deeds but instead inquired if the deceased had unsettled debt or not. If the deceased had unsettled debt, he would instruct his Companions to observe the funeral prayer for the deceased or he (saw) will ask if anyone is willing to settle the debt of the deceased. If not, then the debt will be passed to or assumed by Bayt al-Maal (Muslim). Therefore, as a reminder, once we become capable and the payment is due, let us hasten to settle all of our debts so that it will not cause fitnah to spread within the society, and that we become hypocrites for not fulfilling our promises. Realizing upon the severity of the burden and consequences for not clearing debts, let us humbly realize that: The Muslim ummah must become good exemplary such that when they incur debt, they would fulfill its payments.
Islam obligates those in debt to repay them according to the agreed terms stipulated. It legislates for debt agreement to be written with fairness and witnessed by two other individuals to avoid any fraud or breach of agreement. Islam also requires for the debtor to make intention to clear his debt before he passes away, so that Allah will facilitate his affairs in repaying his debt. Rasulullah (saw) has taught us to always supplicate to Allah so that we are free and protected from the shackles of debt, through his famous du‘aa: “O Allah, I seek refuge with You from being overcome by debt and being put in subjection by men” (Abu Dawood)