3 Steps To Abolish Debt Systems



It is clear that in Islam, we can apply religious thinking to the ethical and moral issues. Thus, to control and overcome the problems arising around debt in Islam, one should encourage others to:
  1. Speak up about injustice and inequality: Islam encourages people to reflect on their individual and global responsibilities so that ethical behaviour will create ethical political and economic systems. 
  2. Support debt cancellation: it sounds like impossible, but truthfully, many borrowers unable to repay the interest of their loans. Let alone to repay the loan itself. Therefore, Muslims should support debt cancellation, gradually, through fair and transparent means.
  3. Support the prohibition of interest and promote risk sharing: The interest charge on loans given by conventional islamic institutions clearly had negative effects towards people, especially borrowers. In addition, any loans that are provided in the future should be done on the basis of equitable risk-sharing in order to prevent unjust means taken by them.

Thus, after all the above statement, there will be one issue left, which is, what should we do if there are still someone out there that genuinely unable to make a debt payment?

It is simple, Islam calls on the lender to wait until such a time as the loan can be repaid, with no penalty for late payment. For those unable to repay the loan, Islamic teaching encourage forgiving the remainder of the loan. As what Allah stated in Quran:

 “If the debtor is in difficulty, grant him time till it is easy for him to repay. But if ye remit it by way of charity, that is best for you if ye only knew.” (Qur’an 2:280)  

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