Debt must be paid back: Debt is money you must pay back. A small debt for a real need can sometimes be unavoidable. But debt for wants — a party, a phone, or a sale — makes the next months harder.
Interest makes it worse: Interest (riba) makes debt worse. You borrow Rs. 10,000 and pay back Rs. 12,000 or more. The extra money is lost to you forever.
Three questions before borrowing: Before borrowing, ask three questions: Is it truly needed? Can I wait and save instead? Can I ask family for help without interest, and pay it back on time?
Pay the expensive debt first: If you already have debt, pay the most expensive one first — the one with the highest interest — and do not take new debt to pay old debt.
Example
Ali's wedding debt: Ali borrowed Rs. 50,000 on interest for a wedding. He paid Rs. 5,000 a month for a year and still owed money at the end, because the interest kept growing.
His brother saved instead: His brother saved for his own wedding for a year instead. The wedding was simpler, but he started married life with no debt.
Key Terms
- Debt (قرض) — money you must pay back
- Riba (ربا) — interest; to be avoided
- Unnecessary debt (غیر ضروری قرض) — borrowing for a want, not a need
Fresh diagram to be drawn: Two paths side by side: "Borrow Rs. 50,000 → pay back Rs. 62,000" and "Save Rs. 5,000 × 10 months → Rs. 50,000, no extra cost". In Project Desk colours.
- Borrowing for wants makes the next months harder.
- Riba is to be avoided: you pay back more than you borrowed.
- If you already have debt, pay the most expensive one first and take no new debt.