A Practical Guide to Debt and Personal Finance for Muslims
Written by: Omar Usman & Adam Taufique Brought to you by Qalam Institute
Table of Contents
1. Intro 2. What Does Islam Say About Debt and Interest? 3. Nuts and Bolts - Tell Your Money Where to Go 4. Having an Emergency Fund 5. Getting Out of Debt 6. Before You Get Married 7. What About Credit Cards? 8. What About Student Loans? 9. Charity (Sadaqah) 10. What Now? About DebtFreeMuslims.com and a request for you to share your story with us.
Staying out of debt is easy. All you have to do is live on less than you make. Don’t buy something unless you have the cash for it. Save what you can, and increase the blessing in your wealth by donating regularly. Oh, and stay away from interest at all costs. That’s all there is to it. Why then do so many people struggle with debt? Why do financial issues break up so many marriages? This is not uniquely a Muslim problem. People incur debt for a variety of reasons - education, medical expenses, car purchases, and good ole consumer debt. In some cases debt is a direct result of some type of hardship, and in other cases it’s just a combination of mismanagement and irresponsible behavior with money. It is our goal here at DebtFreeMuslims.com to give people facing debt a way out. You can get out from under that mountain and be free. You just need to roll up your sleeves and have a plan. We want to help provide real advice for how to discuss money as a family and start changing the way we look at student loans. In short, we’re not concerned here with which mortgage companies are halal, which scholar said they’re okay, and which finance schemes they use. We’re concerned with whether you’re actually in a position to buy a house or not. Are you debt free? Do you have enough saved for a proper down payment? Do you know what your budget will...