Just swipe my credit card

Anybody who has a post box on rent at the Post Office will tell you that they receive free credit cards time and again. The credit cards will come from various departmental stores and from huge companies inviting you to open an account with them and provide interest free for the first three months! Some will even provide a R2000-00 credit ceiling for you just in case you were headed for the dustbin to throw the letter away

When you use the ATM, there will always be a message tempting you to apply for a “Quick Temporary Loan,” and I sure I am not the only one to receive SMSs from banks asking: “Do you need a vacation or do you need to extend your home? Obtain a hassle-free loan from us within 24 hours.”

Today, no doubt, many of us are being controlled by a small rectangular-shaped plastic object called a Credit Card. Some have one or two in our wallets or purses, whilst some have up to ten….ranging from a Visa Card from FNB to a Grey Card from Woolworths. All of them have credit limits and we don’t hesitate to use them whenever we wish.


The Great Recession

About two years ago, the entire world was plunged in to a huge recession. Besides many people having their cars and houses repossessed, huge companies started retrenching thousands of workers. In fact, entire countries are till today on the verge of bankruptcy. Economists say that America owes the world and its own citizens up to 14 trillion dollars and countries such as Greece, Portugal and Italy does not even have money to run their own country.

Our attitude is none the better. We buy things we do not need, with money we don’t have, to impress people we don’t like.

Our example is like that tourist who came in to town and visited a hotel. He lays down a R100- bill and goes upstairs to inspect the rooms. As soon as he put the bill down, the hotel owner takes the money and goes to the butcher to pay his debt. The butcher takes the money and goes to the farm where he purchased the goat in order to pay for the meat. As soon as the farmer receives the money, he goes downtown to pay for the feed which he bough to feed his goats, and he in turn goes to the garage to pay for the repairs on his truck. As soon as the mechanic gets his money, he comes to the hotel to pay for a room that he booked a while ago for his guests. At that very moment, the tourist comes down and takes his money back. Everybody is happy and debt free – but none have the money to carry on with their normal life, so they will start off the process of borrowing again the next day – borrowing from one card to pay off another!

For many people, life is leaving your house in the morning, dressed in clothes they have bought on credit for a job they don’t like. They drive through congestion with a car they are still paying for, putting in fuel they can not afford, in order to get to the job that they need so badly. They need the money badly to pay for the clothes, car, fuel and house that they leave empty the whole day, in order to return to it at to rest so that they can get to work the next day. And the cycle just goes on and on…..


Where have we gone wrong?

All our economic woes stem from a certain mindset: We think that we are entitled to have things, even if we can not afford it. Simply said, we think that living beyond our means is acceptable.

When we were created, the Almighty had already apportioned to us our provision. For every day of our earthly existence, our provision has been set out. We can not get one cent less or one cent more. By us spending beyond our means, we are telling the Almighty: “I am not happy that You are only giving me R1 000-00 a month. I want R50 000-00 a month so I can buy whatever I want!”

Why do we want things we can not afford? The answer is simple. We are more worried about what others have to say of us than our own well being. We will put ourselves in financial difficulty to show the neighbours that we can afford a shiny metallic BMW, DSTV, that we can also eat out at fancy restaurants, and we can also afford a trip to Dubai twice a year. But at the end of the month, we will not be able to pay our children’s school fees or our electricity bill.

In fact, many people have enough money to pay for their necessities in life, but because they need to constantly increase their standard of living just to show off to others, they can not afford the basics. Our lives are based upon the impressions of others upon us.

This is a very superficial type of life. The Almighty says in the Qur’an: “We have apportioned amongst you your provision and We have elevated some above others so that (some) may be subservient to others.” In His infinite wisdom, the Almighty knows how much to give whom and in what time span and we need to accept that.


The Role of Lending Institutions

When we can not afford anything, instead of waiting for a time when we can afford it, we rather look for finance elsewhere. This is exactly why banks have been established. They have ready cash for you, even if you can not afford it, so that you can live beyond your means. And it is because people could not afford to repay due to economic conditions, that is why the great recession took place.

The role of the bank is to make sure that you are in credit and you stay indebted for the rest of your life. In fact, you are regarded as a good client based on your credit rating i.e. how much you borrow and how regularly you repay. The more money you borrow and the more regular you are in your payments, the more your rating goes up. In fact, if you have the opposite policy – the more you save and the more you live within your means, then you are not regarded as a good customer.

If you have a long-term loan, the bank will always entice you to extend and increase your credit. If you refuse, they will entice you with a holiday and the option of skipping three payments or offer you an educational loan for your children’s university fees. In short, once you are in the net, getting out is difficult.


The Solution

If everyone were to change the way they run their financial affairs, the world will once again return to prosperity.

Firstly, we need to all return to the Almighty and repent for our sins, and then we need to make the following changes in our lives:

1. Settle all your credit cards in full. Then cancel all of them and destroy them. Take pleasure in cutting them up, bit by bit. You could apply for a Debit Card in its place for safety reasons. Resolve never to overspend your monthly budget.

2. If you possess an expensive care on HP, sell it and buy a cheaper car for cash. Save up money until you can afford the car of your dreams on your own strength, and not on the strength of the bank. Remember, a vehicle is a liability, not an asset.

3. A house is a necessity, so if your home is of a suitable size for your family, pray to the Almighty that He makes it easy for you to pay off your debt speedily. In fact, try to cut down on your other expenses and pay EXTRA towards your loan. The extra amount reduces your capital amount directly, and even R400-00 a month extra can save you three to six years on your duration.

4. If you have a huge house which exceeds your needs, sell it and buy a house that is suitable for you. Maybe, you will be able to afford it cash or maybe your repayments will be much smaller. When you have the money, purchase the house of your dreams for cash.

5. Instead of spending on credit, now actually start saving. By saving, you would be able to give more in charity and not worry about being able to pay your debts every month. Your health will even improve and you will actually start enjoying your holidays, instead of worrying how to pay the hotel bill!


As Muslims, we need to get back to simplicity. If we have a million, we don’t need to live like a millionaire, and if we do not have a million, we do not need to impress that we are a millionaire. Let us be true to ourselves and start studying the life and Seerah of our Noble Master Muhammad Mustapha (SAW).

In the month of Ramadan, we all know that it is Sunnah to break our fast with dates [khajoor] and water. What we don’t know is that most of the time, dates and water were the only things available to the Holy Prophet and his Companions to break their fast upon!

So the next time, you are tempted to just swipe your credit card, think of the difficulty you may be putting yourself in to – besides the forbidden interest that you are paying to the bank of up to 18%, – and think of the satisfaction that you will get knowing that you have actually bought it with your sweat, and not the sweat of the bank!

Lastly, to all those who are in debt, Islam has a solution for you. Recite much Astaghfaar daily, recite Surah Waqiah every night, and recite the following dua constantly: “Allahumma Innee A’oodhubika minal Hammi wal Huzni Wa A’oozibika minal Ajzi wal Kasli wa A’oozubika minal Jubni wal Bukhli wa A’oozubika min Ghalabatid Dain wa Qahrir Rijaal.”

After this, resolve never to incur an unnecessary debt again.