Dervish

Riba (usury) is a big no-no in Islam, and for many Muslims that includes the Western banking and finance concept of “interest”. I’m one of those “caught in two worlds” type of Muslims. The practical reality of living in Australia, means that I cannot avoid interest - it’s part and parcel of living in Australia. But I attempt to minimise it as much as possible. I have set my personal account interest to 0% and although I have a credit card, I always pay it completely off before the due-date so that I don’t incur any interest charges.

Recently I came across someone I had met once or twice, who was battling a credit-card debt with a bank. His problem was that he had applied for a credit card with a small credit limit, and the bank had consistently raised his limit until it was a substantial size. The problem, I am guessing, was temptation. Knowing that you can borrow money from the credit card company (by using the credit card) doesn’t mean that you should borrow the money. This person had spent some years battling the bank, claiming that he should only have to pay back the original limit amount, as that was all he had asked for, instead of the increased amount which he actually used. 

The bank, presumably cutting its losses, decided to accept an upfront offer that was considerably less than the person owed, but more than the original credit limit.  The person was now in a pickle, because he had to come up with the agreed amount, pronto.

In Islam, zakat can be used to free a person from debt. But what of the person who doesn’t accept responsibility for the debt he has incurred?  Should he be assisted, or should he “suffer” the natural consequences (bankruptcy) so that he learns the hard lesson, of avoiding debt?  What do you think?

Saturday Night Live: Don’t Buy Stuff You Cannot Afford

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