11 Tips to avoid RIBA

The Prophet, upon him be peace, taught, “A time will come over people when not a
one of them will remain other than consumers of interest; and even those who do not
consume it will be effected by its dust.”

This hadith was related by Abu Hurayrah and was included in the collection of Ibn Majah,
Kitab al-Sunan (2269).

Have you realize that we are in these times?

Isn’t it strange how a Muslim will strictly stay away from eating pork because it is haram, yet the same person has no problem devouring riba (otherwise known as usury or interest)?

“…but whoever returns (to dealing in Riba), such are the dwellers of the Fire- they will abide therein”. (Surah Baqarah, verse 275).

Riba brings hardship into this life, but much more importantly and frighteningly are its consequences in the grave and akhirah (the Hereafter).

Buying big things today like houses, cars and even sometimes taking personal loans lands us to RIBA. Long term interest that’s causing major problems these days. There are many problems that arises from RIBA such as many cases of family breakdowns, suicide, homelessness and the list goes on. I would not want to say that this is the source of all problems. It could be but its not just that.

Allow me to share a personal experience. I just came back from my reservist training and being a Lieutenant I have to listen to all the problems the men under me faced. One of the most heartening case was he lost his job for almost 3 months now and because he has all the expenses like mortgages and day to day meals, he had used his credit cards to settle them ending almost more than 10 thousand dollars of bills. Using credit cards was definitely the killer due to the interests the banks had on him. What’s worse is that its not just one credit card but more than 3. Furthermore he has to support his family.

I am very sure that this does not just happen to him and there are many people out there who are in the same boat. In fact more and more people today who are not educated tend to fall into these traps. It could be you too.

Where are we going wrong? Let’s ask ourselves these questions.

Are we supporting the Systems that further escalates our problems?

Do you actually know that you are supporting systems that is causing this problem?

Are we making sure that we don’t put our money in places that continually generate RIBA?

If we are not able to fully get out from RIBA, can we minimize and hopefully someday we can be out of it?

These are questions that you may want to ask and seek answers to and to be honest there is no one exact solution in this complex environment.

How can we get ourselves out in this situation?

I’ve found some answers from ProductiveMuslims.com. The tips are:

1. Having tawakkul that Allah will provide for you and your family
2. Not taking out loans which incur interest
3. Choosing halal investments (for example gold rather than the stock market)
4. Renting and saving the cash for a home instead of a mortgage
5. Being wary of contracts you sign and having a student of knowledge/imam/shaykh check them
6. Opening up bank accounts without interest (in other words, chequing accounts)
7. Making bill payments on time so as not to incur a late penalty (set your account to automatic payment so the bank will automatically withdraw and you will be sure to not pay late)
8. Borrowing money from family or friends where possible
9. Not buying what you simply don’t have the money for – live within your means
10. Dealing with Islamically compliant banks
11. Accepting/Organizing a “Goodly Loan” (al Qard al Hasanah), which is a loan by means of which one intends to show kindness to another, which does not involve taking Riba

You may also consider attending seminars and events on Halal Investments and learning from others how they have done it to get out of the current RIBA systems.

Here’s an upcoming seminar that you may want to consider attending.

The third speaker, Akhi Abdul Halim is currently replaced by Mr Sani Hamid from Financial Alliance.

Get more details here http://www.islamicevents.sg/event/3205

Success in this Life and the hereafter

When examining the issues of RIBA, we should remember that true success lies with the help of Allah alone. If we abide by what which is lawful, and avoid that which is haram, our wealth will be blessed and beneficial in this world and the hereafter. We should seek barakah in our lives. This is a short life in this world, let’s not waste it with RIBA.

And let’s not be afraid to take actionable steps one at a time to get out of it. Allahu Akhbar!

ISLAMIC FINANCE FOR ALL CONFERENCE 2012 15 December 2012, 2pm – 7pm Venue: Sultan Mosque, AuditoriumDetails» Organiser: Amanah Asset Management Speakers: Dato’ Mohd Fadzli Yusof, Wan Abdul Rahim Kamil, Sani Hamid