There is no prohibition on having debt in Islam. Even Islam advocates helping others who are struggling, especially those who are in debt.
However, a Muslim is prohibited from being involved in debts accompanied by usury or interest.
Understanding debt in the view of Islam is very simple. Debt is a transaction between the two parties with the understanding that the first party hands over money to the second party voluntarily to be returned again at a predetermined time in accordance with the agreement.
Debt law in the opinion of the scholars is permissible or permissible. The party conducting the debt is encouraged to determine the time to return the debt as outlined in a written agreement and witnessed directly by the witnesses.
The principle of debt in Islam
Islam has taught several principles or manners in debt and debt. Among these are explained in the following points.
1. Record debts
Accounts payable receivable transactions should be recorded clearly. Recording is done by stating the amount of property or goods borrowed and the payment due date. The agreement can be written in the form of a letter of agreement or other written evidence.
To reinforce the fact that there have been accounts payable debt transactions can be added by witnesses who also signed the agreement letter. The recording is intended to strengthen the transaction so that the heirs can fulfill their obligations later if one party dies.
2. Paying the debt immediately
When a debt transaction occurs, a contract occurs. Debtors are required to immediately fulfill their obligation to pay their debts in accordance with the maturity date. So, ulfill the promise to keep the debt payment based on the contract or agreement that was agreed at the beginning.
3. Debt only for urgent needs
Islam does allow debt or give credit to help others who are in trouble. However, debt is not recommended if it becomes a habit. Especially if the goal is mere mere consumptive purposes, such as buying a new cellphone or funds to buy a vehicle.
Therefore, owe if only in urgent conditions. Only as not accustomed to debt. You can also start setting aside at least 10 percent of your income for emergency funds. So that when needed, you do not need to seek debt from other people.
4. Collect debt
One obstacle for lenders is when debt is due but there is no payment. In such conditions, the creditor has the right to collect the debt in a good manner.
There is no harm in reminding the due date of the debtor as there is a possibility that he is forced to use the payment money for other emergency needs and has not yet gotten a replacement to pay off the debt.
5. Using collateral or collateral
The principle in accounts payable is that nothing is wronged and wronged. Therefore, Islam does not matter if there is collateral or collateral with a value equivalent to the money borrowed. With notes, it is only intended that the debtor can immediately pay off according to the maturity date.
Debt Elimination in Islam
Debt is the most heavy burden in the afterlife. In accordance with Islamic law, someone who dies in a state of debt will prevent them from being blocked from Heaven’s door. That is the reason why inheritance must be used to pay off debts before being distributed to heirs.
As for people who are still in debt and have difficulty in paying their debts, there are several paths that can be taken, including the following.
1. Providing relief for extending the repayment time
Payment of debt must be according to the due date. Meanwhile, if the debtor is still unable to pay according to the agreement at the beginning, the party providing the debt can provide relief in the form of an extension of the repayment period.
These conditions can be done if it turns out the person who owes is still not getting spacious. Another case if people who are in debt deliberately delay payment. Under these conditions, the creditor has the right to collect the debt in accordance with the agreed maturity.
2. Providing relief by freeing part or all of the debt
In Islam it is taught to provide relief, especially for people who are in debt and are still in a difficult condition. In such conditions, the lender can free part of the debt in accordance with the willingness and free all the debt.
Those are some things that you need to know about accounts receivable debt in Islam. Islam teaches to help one another and help those who are struggling. In the Koran, it is promised that those who give relief or release their brothers from difficulties will be promised the best place on His side.