Updated: Jul 15, 2023
Facing debt can be difficult for individuals from all walks of life, but for Muslims, it carries additional weight due to the Islamic rulings that govern financial matters. In today's modern digital age, credit cards are essential for convenient and secure transactions. However, encountering payment issues with credit cards can lead to frustration and stress. This tool aims to provide insights to help Muslims manage their credit card payment promptly. One of the key aspects of Islamic finance is the prohibition of riba (interest). Muslims are required to avoid any financial transactions that involve charging or paying interest. Consequently, carrying credit card balances that accumulate interest is not permissible. This tool will guide how to minimize interest charges. Additionally, this tool will offer strategies but negotiate with credit card providers in cases of issues. By proactively addressing their financial challenges, Muslims can find solutions that align with their beliefs and values. Moreover, this tool will give insights into the importance of responsible spending to prevent credit card payment issues in the first place. By promoting financial discipline, individuals can avoid accumulating excessive debt and mitigate the likelihood of encountering payment difficulties. This tool aims to assist Muslims in navigating credit card payment issues while upholding Islamic principles. Individuals can overcome obstacles and regain control over their financial transactions by providing valuable insights, strategies, and guidance; that is what we aim to achieve with this tool. Through responsible financial practices and adherence to Islamic principles, Muslims can effectively manage their debts and achieve greater financial stability.
The calculator is customized to meet the requirements of credit card payment and interest rate calculations. The calculator will help the user understands the importance of paying off credit card bills resulting in a loss due to non-payment, and if extended, then the impact of daily, monthly, or yearly credit card payments.
Credit card interest incurs daily is very different than other loans or mortgages. Credit card interest is one of the major contributors to increased debts per person. Since the modern system has made credit cards signed up and approved easier than ever, it does not mean that it will not cost money the negligence of payments or non-abiding credit card agreements.
The table below shows examples of Daily, Monthly, and Yearly interest incurring based on the balance due and interest rate chosen. Also, it shows how long would it take to pay off the credit card payments.
Additionally, it's crucial to familiarize yourself with Islamic financial principles. Shariah-compliant finance prohibits certain practices such as interest (riba) and speculative transactions (gharar). This knowledge will help you evaluate credit card options that align with your religious beliefs, such as those offering halal alternatives like profit-sharing arrangements (Mudarabah) or leasing (Ijarah).
DISCLAIMER: We strive to offer users accurate information to the best of our knowledge. However, laws are subject to change; therefore, the user assumes full responsibility and should utilize the information on our website and this tool as a reference per our terms and conditions. If you believe any part of the calculation is incorrect or contains errors, we kindly request your feedback here.