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How to lead a debt free life as a Muslim?

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The Prophet Muhammad (peace be upon him) said, “The upper hand is better than the lower hand. The upper hand is the one that gives, and the lower hand is the one that receives.” This hadith highlights the importance of financial responsibility and generosity.

Seek blessings in lawful earnings (1 minute):
The Quran emphasizes the importance of earning a livelihood through lawful halal means. Allah says, “O you who have believed, eat from the good things which We have provided for you and be grateful to Allah” (Surah Al-Baqarah, 2:172). By focusing on halal income, we can avoid the pitfalls of debt incurred through unlawful means.
Live within your means (1 minute):
Allah says in the Quran, “And do not extend your eyes toward that by which We have given enjoyment to [some] categories of them, [its being but] the splendor of worldly life by which We test them. And the provision of your Lord is better and more enduring” (Surah Ta-Ha, 20:131). It is important to avoid unnecessary expenses and live within our means, resisting the temptation of materialistic desires.
Avoid riba (interest) and debt (1 minute):
Riba (interest) is strictly prohibited in Islam. Allah says in the Quran, “O you who have believed, fear Allah and give up what remains [due to you] of interest if you should be believers” (Surah Al-Baqarah, 2:278). Accumulating interest-based debt can lead to financial burdens and stress. Therefore, it is crucial to avoid interest-based transactions and seek alternative financial solutions, such as Islamic banking and finance.
Plan and budget wisely (1 minute):
The Prophet Muhammad (peace be upon him) said, “The best of you are those who are best in fulfilling their debts.” To achieve this, it is essential to plan and budget our expenses wisely. By tracking our income and expenses, we can prioritize debt repayment and avoid unnecessary spending.
Practice contentment and gratitude (1 minute):
Contentment is a key aspect of leading a debt-free life. Allah says in the Quran, “And if you should count the favors of Allah, you could not enumerate them. Indeed, Allah is Forgiving and Merciful” (Surah An-Nahl, 16:18). Being grateful for what we have helps us avoid the urge to accumulate unnecessary debt to fulfill our desires.
Seek assistance from the community (1 minute):
Islam promotes a strong sense of community and mutual support. If someone is burdened with debt, it is encouraged to seek help from the community without hesitation. The Prophet Muhammad (peace be upon him) said, “Whoever relieves a believer’s distress of the distressful aspects of this world, Allah will rescue him from a difficulty of the difficulties of the Hereafter.”

In conclusion, leading a debt-free life as a Muslim requires adherence to the principles outlined in the Quran and Sunnah. By seeking lawful earnings, living within our means, avoiding riba, planning wisely, practicing contentment, and seeking community assistance, we can strive towards financial stability and freedom. May Allah bless us all with financial well-being and guide us on the righteous path. Jazakum Allah khayran.