They say:
“If you want to lose a friend quickly, lend them money, you may end up losing both the money and the friend.”
In Islam, financial dealings are not merely worldly transactions, they are spiritual responsibilities with serious consequences. While much is said in Islamic finance about contracts, riba, and commercial ethics, our focus in this blog is on a more intimate yet frequently overlooked topic: personal debt between individuals.
We are not referring to riba-based bank loans or business liabilities, but rather everyday borrowings, for instance, when a friend lends money to a friend, a brother helps out his sister, or a colleague covers another’s expense, with the expectation of repayment. These interactions often bypass formal contracts, but in the sight of Allah, they carry great weight.
Let’s dive into the Islamic guidance surrounding personal debt, its spiritual consequences, and practical solutions drawn from our sacred texts.
Shall we?
Prophetic Warnings on Debt
The Prophet Muhammad ﷺ was deeply concerned about the moral and spiritual impact of unpaid debts. His statements on this issue are crystal clear.
He ﷺ said in one of his hadiths:
“مَطْلُ الغَنِيِّ ظُلْمٌ” “Delaying repayment by a wealthy person is oppression.” (Bukhari & Muslim)
As we can see, Islam equates willful delay in repayment when one is capable with ظلم (oppression). It’s not merely a bad manner; it is injustice!
The Prophet ﷺ was so serious about debt that on several occasions, he refrained from leading the funeral prayer (Janazah) for a deceased Muslim who died with outstanding debts, unless the debt was cleared on his behalf.
In one instance, a companion had passed away leaving behind just two dinars of unpaid debt. The Prophet ﷺ asked whether the debt was covered. When the companions said no, he said:
“Then pray over your companion yourselves.”
It was only when Abu Qatada (رضي الله عنه) stood up and took responsibility for the debt that the Prophet ﷺ agreed to lead the prayer.
And that was for just two dinars. Now imagine the state of those who leave behind debts worth thousands or even millions. May Allah protect us from such a burden.
In another hadith, He ﷺ said:
“نَفْسُ المُؤْمِنِ مُعَلَّقَةٌ بِدَيْنِهِ حَتَّى يُقْضَى عَنْهُ” “The soul of the believer remains suspended due to his debt until it is paid off.” (Tirmidhi)
This shows that debt is not only a financial burden, it becomes a spiritual one, potentially delaying the believer’s entrance into the mercy of Allah after death.
Qur’anic Emphasis on Debt
The seriousness of debt is further reflected in the Qur’an itself. The longest verse in the Qur’an is not about prayer or fasting, but about documenting debts.
“O you who believe! When you contract a debt for a fixed period, write it down…” (Quran 2:282)
This verse outlines a detailed framework for debt transactions, such as writing the contract, having witnesses, and ensuring clarity for all parties involved. The length and detail of this verse signal the gravity of this matter in Islamic law and society.
It also emphasizes the core principles of justice, accountability, and mutual transparency in financial dealings, whether between banks and clients or between two individuals.
The cycle of delay and avoidance
Today, many people find themselves trapped in a harmful pattern, that is borrowing from one person to pay back another, not out of necessity but habit or neglect.
Some even borrow without any real intention to repay, thinking they can “figure it out later.”
The Prophet ﷺ warned:
“من أخذ أموال الناس يريد إتلافها، أتلفه الله” “Whoever takes people’s money intending to waste it (i.e., not repay it), Allah will destroy him.” (Bukhari)
This hadith addresses the hidden intention behind borrowing. If a person borrows money and consciously plans to never repay it, then they are not just irresponsible, they are sinful and subject to Allah’s punishment.
Practical Guidance from the Qur’an and Sunnah
Islam does not merely warn, it also offers solutions. Here are some practical guidance with regards to debts.
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Only Borrow When Necessary
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Borrowing should not be a casual or habitual act. Only borrow when truly necessary and with a firm, sincere intention to repay.
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Document Your Debts
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As emphasized in Surah Al-Baqarah (2:282), debts should be documented. Even a simple written record or a message witnessed by others can protect both the lender and borrower.
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Be Lenient with Debtors in Difficulty
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Islam urges compassion when the debtor is genuinely in difficulty.
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“And if the debtor is in hardship, then allow him time until ease. But if you forgive it as charity, it is better for you…” (Quran 2:280)
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This ayah not only encourages patience but even elevates the act of forgiving debt to the level of charity.
Conclusion
Debt in Islam is more than a financial instrument; it is a spiritual responsibility.
As Muslims, we are commanded to uphold justice, trust, and transparency in all dealings, especially when money is involved. Failure to honor one’s debt isn’t just a breach of trust between us humans, but it is a breach of the bond we are supposed to have with Allah (SWT).
May Allah make us people of truth, trust, and Tawakkul, those who repay promptly, lend generously, and live debt-free whenever possible.
