Was watching a program last night, it said that about 1 in 3 australians are in debt. “We owe more than we earn. We borrow to buy, we borrow to invest. Our level of personal debt against income is now one of the highest in the world. It’s so different from our parents’ or grandparents’ days when debt was a dirty word.” (from four corners,abc).
I have two credit cards to pay off, but im not concerned about being indebt that much as being charged interest.
I personally use mine when i really need to, not for shopping etc..
Do we really need all the luxury, so much that we are willing to be in debt and pay off our credit cards for months n years to come..
you can look at islamically, or economically or anyway you want it..
i know... i dont use my credit card for shopping purposes.. it gets used for other ongoing payments.. like gym, sponsor kid, health insurance etc.. i dont touch it for any other purposes..
Nothing wrong with spending via credit cards, as long as you pay the whole balance at the end of the month. Most credit cards offer air miles, cash back or other rewards, so if you are going to spend money anyway, might as well make it useful.
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*Originally posted by Faisal: *
Nothing wrong with spending via credit cards, as long as you pay the whole balance at the end of the month. Most credit cards offer air miles, cash back or other rewards, so if you are going to spend money anyway, might as well make it useful.
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thats true, according to Bank of Englands report last week, UK consumers are in about £1.5 Trillion debet. of course that is not inclusive of mortgages!
[QUOTE]
*Originally posted by Faisal: *
Nothing wrong with spending via credit cards, as long as you pay the whole balance at the end of the month. Most credit cards offer air miles, cash back or other rewards, so if you are going to spend money anyway, might as well make it useful.
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Aren't these so called 'rewards' haram? I would like to hear a fatwa on this one.
I don't enjoy the luxury that comes from being in debt...but thats me. Superficial people might disagree.
Really Fayz? As long as you are sensible with your credit cards and pay it off at the end of the month BEFORE the interest penalty begins, then I don't see a problem with it. Considering all the shopping I do with my card, I should seriously switch to a credit card that gives me air miles.
Mehnaz thats what i've heard too, that if you pay it off before you get charged interest then it's fine. (I dont know any islamic ruling on this, so plz dont take my word for it.)
Oh, well I just pay it off early cause I have no desire to pay interest. :p If you have the money, then you should pay it off ASAP. To me it makes no sense to let interest accumulate and end up paying more. I've never looked at it from an Islamic point of view though.
One of them is overpaid and kept in credit (wonder if that improves my credit rating at all). I only use it when my main credit card (an Amex) is not accepted.
The other one, my main credit card, is the one I spend on but I always pay it off in full. I get 1% money back on anything I buy with it (and I try to buy everything with it), so it’s almost as though my whole life is one big 1% off sale :kanjoos:
But last year, I spent nearly 1/3 of my net salary through that credit card so I got enough money back for a nice little treat for me
my parents used to use credit cards alot we would get a bill of over 1000 pounds a month easily but for the past 2 or 3 years they use cash now and its much better :p . it helps u be aware of how much money u have spent.
paying intret is haram so if u pay off the credit card b4 the interest comes in its just like paying by cash. :)
Lol Mads at 1%.. dats smart thinkin...
waleed, your right buying with cash, saves alot of bank fees/charges too..
but sometimes theres no choice but to use credit..
