4 Sources Of Debt In Malaysia



1. Credit Card.

Keep away from using credit cards. In addition to the issues that are so close to usury with a credit card, it's encouraging people to the excessive debt. Even if someone wants to use it, it is advised to be used to facilitate the moments that really desperate for them. Avoid from using it because it is addictive and bring harm more than interest to us.

2. Personal Loans.

This is another type of product that can cause money-disaster-situation among us. We need to start realizing that all types of conventional personal loans are forbidden by Islam and has been agreed by all scholars.

But, today, since there are a quite number of Islamic banks that offering loans (financing) for personal use there has been 'khilaf'. For the record, not all Islamic banks offer it because it is based on the concept of sale and buy back between the two sides of the same party.

This concept is very controversial and has been rejected by most scholars in the Middle East. However it is accepted by scholars in Malaysia and Brunei. Therefore, it only can be used in the most urgent situation, and need to be reduced or eliminated the high rate of fees in order to reduce the debt burden to the borrower.

3. Housing and Car.

Nowadays, these two are important for many individuals. For me, preferably, we need to limit our own personal debt to two types only, maximum. Then, we also need to assess our financial capability wisely in order to not get exposed to the danger of insolvency. Any car and home loans in the conventional are prohibited and the prohibition has been agreed by all scholars of the world.

4. Umrah and Hajj (for the second time).

Hajj is absolutely obligatory for Muslims who can afford it physically and financially. However, that is only required once. Thus, Muslims must understand the 'priority' in managing their personal money. According to Islam, the money allocated for the Umrah and Hajj for the first time is good, and if it for the second times, it is better to use that money for disposing of personal debt payments. Unfortunately, lack of understanding of most Muslims today often causes them to put something less important than the most important stuff.

Comments

Post a Comment

Popular posts from this blog

The Comparison Between Riba' Al-Nasai'e and Riba' Al-Fadhl

Image
First of all, let us see, what is Riba' Al-Nasai'e (riba' on credit) and Riba' Al-Fadhl (riba' on cash). Firstly, Riba' al-Nasai'e. It refers to a stipulated increase over the loan which a debtor agrees to pay to his creditor in relation of a specific period of time. The charge payable are fixed by the borrower to the lender depends on how many the loan money produces. Thus, any gain that comes from a loan transaction is usurious. This type of riba is prohibited by the Quran (30:39; 4: 160-1; 3: 130; and 2: 275-281). The hadith of the Prophet p.b.u.h. states: “Jabir said that Allah's Messenger (may peace be upon him) cursed the receiver of interest and its payer, and one who records it, and the two witnesses, and he said: They are all equal (in term of sins).” (Bukhari and Muslim) Since the verses of Quran has directly rendered this type of riba' as 'haram', it is also can be called as Riba' al-Qur’an. For example, this kind ...
Read more

5 Ways To Settle Down Your PTPTN's Debt Faster Than Your Friend

Image
1. Consistently pay back the debt. The best way for all those PTPTN borrowers to pay their debt is by consistently deposit some amount of money to the PTPTN authority. Either you like it or not, you will be listed in CCRIS if you did not pay it. You can do this to make sure you pay the debt consistently. First, put aside special funds every month to repay the debt. Do not mix the fund with other cash. It will be much easier if you setup a different account, specifically for the repayment of the debt. 2. Negotiate with the officer. As we all know, the debt payment will be started after 3 month of graduation. But, not all of us are can get a great job immediately after graduation and if the period to pay the debt kicks in, what you can do? This is your alternative, you can go to any PTPTN offices, branches or kiosks across the country for negotiation. Provide all the necessary documents and proof that showed you are struggling to find a job and to repay the debt. Moreover...
Read more

#TL;DR : Risk Sharing In Islam

Image
Islam does not prohibit all commercial business or all loans. Instead, it encourages legitimate commerce and trade activities, undertaken on the basis of ‘equitable risk sharing.’ Equitable risk sharing means, that both parties share in the reward, or the failure, of the investment, thereby encouraging more responsible lending practices.  However, the ‘unjust’ loans provided to conventional banks, or any conventional financial institutions were not given on this basis. Therefore there was no reason for the bank to ensure that the loans were invested wisely and productively, or that the borrowers would be able to pay them back. In Islam, the responsible loans (or known as a profit) such as those that are used to finance economic activities are permitted. However, it is the obligation of the lender to provide loans in a responsible manner and also in a manner that does not overburden the borrower. Yet, the ‘unjust’ loans given by some conventional financial instituti...
Read more