Islam and the Quran

Paying off debts by loaning

Question: I owe money to multiple banks at the same time and I am not able to pay them. It will be easier if I, in order to get out of this debt, borrow money from another bank for the one last time, pay my debts to the other banks, and then focus only on paying my last debt. Would it be permissible for me to take out a loan for this purpose?

Do not resort once again to the forbidden (haraam) in order to pay your debts. A mistake cannot be corrected by another mistake. Otherwise, your debt can turn into a larger downward spiral.

What you should urgently do is to either borrow money from a friend on the basis of a benevolent loan (qard hasan), or – if you own something – sell some of your belongings for cash. If neither of these is possible, you should pay the existing debt without taking out a new loan with interest, by decreasing your expenses. Otherwise, the method you mention also involves interest and is not permissible.

God commands in Surah Al-Inshirah that:

“Indeed with hardship, there is also ease.
Indeed with hardship there is also one more ease.
So when you have the time, toil.
Give the preference to your Lord.”
(Al-Inshirah/The Solace, 94:5-8)

According to these verses, it is ordered that we work at all times, head for a new task once we finish one, and depend only on God. God tells us the good news that he is going to grant us easiness if we obey these orders. For this reason never resort to the forbidden. Be patient and work hard. Apart from that, pray the God that he turns this hard situation into an easy one. Do not forget that help does not come early. God tries you, puts you in hardships, shakes you… He sees that you are being patient and not resorting to the forbidden, and then he sends his help. The following verse expresses this clearly:

“Or do you suppose that you will enter the Gardens while such [test] has not yet come to you as came to those who passed on before you? They were touched by misery and adversity and were shaken until [even their] messenger and those who believed with him said, “When is the help of Allah?” Unquestionably, the help of Allah is near.” (Al-Baqarah/The Cow, 2:214)

As you can see, God does not send his help before his test is over. God the Almighty commands that:

“Do the people suppose that they will be left alone to say, “We believe,” without being put to test? But We have certainly tested those before them, and Allah will surely know those who are truthful, and He will surely know the liars.” (Al-Ankaboot/The Spider, 29:2-3)

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