Ahmed Danyal Arif & Bilaal Dar, UK
In recent years, household indebtedness has emerged as a significant global social issue. Despite this, a hidden battle often flies under the radar: the inextricable connection between debt, money, and mental health.
As individuals navigate the complex and sometimes overwhelming domains of personal finance and psychological well-being, it may seem as though they are caught at the intersection of two separate spheres. Yet, the connection between debt and mental health is indisputable, as financial strain frequently serves as a catalyst for anxiety, depression, and a range of other mental health disorders. The situation is increasingly alarming, with recent data showing the extent of the problem and revealing a disturbing trend.
A report published by the Parliamentary Office of Science and Technology (POST) revealed that an estimated 14.6 million adults in the UK (28%) find it difficult to cope financially, with 7.4 million (14%) feeling burdened by keeping up with bills and credit commitments. This plays a major role in developing mental health issues, such as anxiety, evidenced by the fact that 58% of people in problem debt experience medium or high anxiety, compared to only 27% of those without problem debt. (“Consumer debt and mental health”, post.parliament.uk, 21 October 2024)
Unfortunately, it doesn’t just stop at anxiety. Debt issues can be so great that people even evaluate whether life is worth living. A report found that over 420,000 people in problem debt consider suicide annually in England alone. (“Financial difficulties and suicide: taking a closer look at the numbers”, www.moneyandmentalhealth.org, 5 February 2019)
It is no mystery as to why this occurs. Having debt increases anxiety and depression, which can cause people to withdraw and prevent them from functioning in their prime. This can lead to further difficulty in their work, causing more financial stress – creating a vicious cycle of spiralling debt and worsening mental health. (“The Relationship Between Financial Worries and Psychological Distress Among U.S. Adults”, link.springer.com, 1 February 2022)
Bread, circuses and debt
At the end of the 19th century, German philosopher Nietzsche declared God’s “death” in a single stroke. This event, far from going unnoticed, created a profound existential void, which was swiftly filled by a newfound and fervent belief in economic growth and consumerism, which soon became the cornerstones of modern Western society.
Indeed, consumption seems to have become second nature and a growing part of our lives; our infatuation and our disapproval are now taking place in the arena of the consumer society. The shimmer of materialism often overshadows the essence of personal fulfilment, and a significant number of individuals find themselves ensnared in a relentless pursuit of a lifestyle beyond their means.
One of the foundational principles of modern economic theory is the concept of “consumer sovereignty”. This notion rests on the assumption that individuals have the freedom to make purchasing decisions based on their preferences, thereby suggesting that they are best positioned to determine what is in their best interest.
Additionally, consumers can effectively organise and prioritise their preferences when making choices. In the context of a capitalist system, this framework aligns with the assumption that human nature is inherently selfish, implying that individuals will act in ways that maximise their benefit.
On the other hand, the structure of the current financial and monetary system – which primarily relies on interest-bearing debt – directly fosters a preference for immediate consumption over long-term contentment. It is no wonder that economists of the Austrian School of Economics justify the interest rate through the theory of time preference, which asserts that people prefer present income, present consumption, and present satisfaction of wants. (“The Myth of Time Preference”, www.econlib.org, 10 March 2005)
Human beings are depicted as being naturally impatient with a high inclination to consume. Since money allows its holders to satisfy their wants, so-called rational individuals will prefer money now to money later. Here, we see one manifestation of positive time preference, the supposed human preference for having pleasurable experiences sooner and painful experiences later.
In that respect, interest is the most important discovery in the history of finance as it allows for intertemporal transactions. The capitalist financial framework acts as an intangible force that distorts our perception of time, disrupting the natural course of events in a profound and often perplexing manner.
By increasing our purchasing power in the present, we simultaneously diminish our capacity for future consumption. In effect, it enables us to consume what we ought to have deferred for tomorrow, shifting our focus from future stability to instant gratification.
A never-ending rat race
That said, the role of media institutions, alongside that of finance, is far from insignificant and has reduced the assumption of consumer sovereignty to a myth. In a society where keeping up with the Joneses becomes a mantra, consumerism is largely abetted by the onslaughts of advertisement campaigns which have become an art in themselves.
Psychologically, consumers are often led to derive a sense of self-worth from possessing novel items as compared to others in their social circles. But this value system has detrimental social consequences as it tends to marginalise those who fail to acquire the latest goods possessed by their peers and neighbours. This creates an impulse to catch up and beat others, leading to a never-ending rat race.
Furthermore, by assuming that individuals consistently know what is best for them, economists overlooked the distinction between needs and wants, consequently setting themselves an inherently unachievable task. Wants are insatiable and increase as wealth increases. While they may provide immediate pleasure, instant gratification often can be extremely deleterious in terms of mental health.
These effects stem from the way it influences brain chemistry, behaviour patterns (i.e. dysregulation of the neurochemical reward system, addiction, compulsive consumption), and emotional regulation (i.e. increased anxiety, stress, and mood instability).
Smitten with insanity
The profound psychological and behavioural impacts of living in a debt-driven consumerist society are not only acknowledged in recent research but are also profoundly addressed in traditional wisdom.
In the Islamic tradition, for instance, the harmful effects of interest-bearing debts on individuals’ well-being are powerfully depicted in the Holy Quran, illustrating how the pursuit of financial gain at the expense of one’s moral and mental health can lead to a distorted sense of self and judgment. Allah states, “Those who devour interest do not rise except as rises one whom Satan has smitten with insanity.” (Surah al-Baqarah, Ch.2: V.276)
Indeed, in an interest-based society, moneylenders are prone to extend loans without investigating the ability of the borrower to repay. Likewise, due to impatience and excessive spending, the borrowers do not always consider their repayment ability. (Hazrat Mirza Tahir Ahmadrh, Islam’s Response to Contemporary Issues, 2007, p. 182)
Commenting on the aforementioned verse, Hazrat Mirza Bashir-ud-Din Mahmud Ahmadra states that just as a madman does not see the consequences of his actions, similarly, “those who pay interest have their sense of dignity lowered and they contract the habit of carelessness and hastiness, thus acquiring a resemblance to one stricken by madness.” (Tafsir-e-Kabir, Vol. 2, 2023, pp. 508-509)
The salient point that emerges from this verse is how interest contributes to decreased self-worth and self-esteem. Modern research continues to confirm that financial stress can have profound and negative outcomes on one’s mental state and behaviour. The stress of owing money and paying interest surely contributes to anxiety, a sense of helplessness, and sometimes depression.
When people are overwhelmed by debt, they often experience a loss of control, which can lead to feelings of shame and a diminished sense of self-worth. The sense of urgency and carelessness might stem from the financial strain and pressure to make quick decisions in a desperate attempt to resolve the situation. This could lead to risky behaviour and poor decision-making, which in some cases might resemble the erratic behaviour associated with emotional or psychological distress.
Additionally, debt can impair cognitive function, making it harder for people to focus on long-term goals or manage their finances effectively. This “mental load” from constant financial worry may manifest as carelessness or hastiness in other areas of life.
The joys of frugality and being debt-free
The love of wealth can be considered one of the most compelling forces driving human behaviour since time immemorial. The desire for material possessions – coupled with an excessive and often misplaced ambition to outpace others in terms of wealth, status, or social standing – forms the root of many human conflicts.
In contrast to the materialistic postulate, Prophet Muhammadsa placed a very high premium on simple living and discouraged people from luxuries. Islam revolts against reckless consumerism and the Holy Quran tells us that the focus should be to be fulfilling needs rather than idle and vain desires. Allah asks, “Has thou seen him who has taken his desire for his god?” (Surah al-Jathiyah, Ch.45: V.24)
Similarly, Allah the Almighty describes believers in one place in the Holy Quran and states, “And those who, when they spend, are neither extravagant nor niggardly but moderate between the two.” (Surah al-Furqan, Ch.25: V.68)
Allah also commands the believers, “Eat and drink but exceed not the bounds; surely He does not love those who exceed the bounds.” (Surah al-A’raf, Ch.7: V.32)
Islam does not advocate living a life of deprivation, even for those capable of affording a higher standard of living. The economic model that aligns with the Islamic ethos is one of a balanced consumption economy where disparities in socio-economic conditions are significantly reduced compared to those observed in contemporary capitalist societies.
The Islamic perspective on life encourages individuals who can attain a higher material standard of living to voluntarily forgo certain comforts and contribute to improving the economic conditions of others in the spirit of human solidarity. Allah the Almighty tells us, “Never shall you attain to righteousness unless you spend out of that which you love.” (Surah Aal-e-’Imran, Ch.3: V.93)
True richness is also considered to be that of the soul, specifically the sense of contentment and satisfaction derived from having only what is necessary to get by without placing excessive value on fleeting material wealth. (Sahih al-Bukhari, Kitab ar-riqaq, Bab al-ghina ghina an-nafs, Hadith 6446)
True wealth, therefore, does not lie in the accumulation of abundant possessions, particularly when such abundance is coupled with an insatiable desire for even more.
Further guidance regarding debt
Of course, in cases of necessity and emergency, debt is not prohibited. Islam teaches that interest-free loans can be given, but at the same time places an extremely high moral burden on repaying loans. The gravity of debt-related issues can be encapsulated in the linguistic meaning of the Arabic term for debt, which is دين (dayn). The word is associated with a state of submission, abasement, or even enslavement. (“دين”, www.perseus.tufts.edu)
Therefore, in addition to emphasising caution, responsibility, and, most importantly, the intention and effort to repay debt promptly, the promotion of a debt-free life has been encouraged.
There are numerous traditions of the Holy Prophet of Islamsa where he highlights the virtues of repaying debts timely, the most prominent and impactful being that, “the best of you are those who pay off their debts in the best manner.” (Sunan Ibn-e-Majah, Kitab as-sadaqat, Bab husnil qadha, Hadith 2423)
In addition to fulfilling one’s duty and honouring one’s pledge, this is also a way of expressing gratitude and kindness to the creditor who helped the debtor in his time of need. In a tradition narrated by Hazrat Jabir ibn Abdullahra, it is mentioned that the Holy Prophetsa owed him a debt and gave him something extra when he paid it. (Sunan Abi Dawud, Kitab al-buyuh, Bab fi husnil qadha, Hadith 3347)
Paying off debt is also described as a means of attaining God’s reward and forgiveness: “The believer’s soul is suspended by his debt until it is settled for him.” (Jami` at-Tirmidhi, Kitab al-janaiz, Bab ma ja’a ‘an al-nabiyy salla-Allahu alaihi wa sallam annahu qala nafsu al-mu’mini mu’allaqatun bidaynihi hatta yuqda ‘anhu, Hadith 1078)
In matters related to funeral rites, it is even mentioned that upon hearing that a deceased had debts, the Holy Prophetsa declined to lead the funeral prayer. (Sahih al-Bukhari, Kitab al-kafalah, Bab man takaffala ‘an mayyitin daynan fa laisa lahu an yarja’a, Hadith 2295)
In another incident, the Holy Prophetsa demonstrated his magnificent example regarding a Jewish scholar called Zaid bin Su`nah. The Holy Prophetsa had taken a loan from him and a few days before the agreed date of returning the loan, he demanded to be paid back in a rude and unpleasant manner. While approaching the Holy Prophetsa, he offensively tugged his shawl and said he knew nothing of his family except deferment on debts.
Hazrat Umar ibn al-Khattabra, who was present at the occasion, got angry and was ready to strike his head with his sword for his insolence. The Holy Prophetsa smiled upon hearing this and quietly said: “O Umar! It would have been more appropriate of you to advise me to pay what I owe on time and to fulfil my promises courteously.”
After saying this, the Holy Prophetsa instructed Hazrat Umarra to pay what was owed to him and also compensate the man 44 extra kilograms of dates as compensation for his harsh attitude towards him. The Jewish man was deeply affected by this attitude of love and kindness towards him and eventually became a Muslim in his lifetime. (Al-Mustadrik, Kitab al-buyu’u, Bab wa am-maa hadith Ismail bin Ja’far bin Abi Kathir, Hadith 2237)
All these exhortations have proven to be true and consistently validated by modern research. Paying off debt is associated with a wide range of psychological and emotional benefits. Experts emphasise that the elimination of debt contributes significantly to reducing stress, enhancing both mental and physical health, and providing emotional relief. The process of becoming debt-free can also have a liberating effect, as it alleviates the financial strain that often undermines overall well-being.
Additionally, individuals frequently report an increase in self-confidence upon clearing their debts, as it dispels the stigma and shame typically linked to financial difficulties. This enhanced sense of self-worth can positively impact interpersonal relationships, with financial transparency fostering improved communication and trust.
Lastly, the experience of successfully managing and eliminating debt can reinforce financial discipline, thereby decreasing the likelihood of re-entering a cycle of debt. By adhering to a well-structured budget, individuals are better positioned to manage their finances effectively, promoting long-term financial stability and mental well-being. (“The Psychological Benefits of Paying Off Debt”, www.bankrate.com, 7 October 2024)
Thus, it is important to note that as a balanced faith, Islam emphasises not only individual actions but also social responsibilities and the collective well-being of society. To this end, guidance is provided to all parties involved to ensure they strive to be the best versions of themselves. While borrowers are admonished against unnecessary delays in repayment, lenders are encouraged to show leniency, especially if the borrowers truly find themselves in dire straits. (“How Capitalism Creates Psychopaths: Homo Economicus vs. Homo Islamicus”, rationalreligion.co.uk, 20 February 2022)
Assisting those in debt is regarded as a virtuous act rewarded by divine favour. Allah states, “And if any [debtor] be in straitened circumstances, then [grant him] respite till a time of ease. And that you remit it as charity shall be better for you, if only you knew.” (Surah al-Baqarah, Ch.2: V.281)
As such, fostering a culture of empathy, understanding, and self-care within society can contribute to the development of a healthier, ethical, and more compassionate financial landscape. Such an approach would recognise the human element in every financial transaction and emphasise the importance of balancing financial prudence with mental well-being.
Prayers to break the chains of debt
Facing the daunting task of repaying one’s debt causes a weighty burden to be placed on the mind. It is all too easy in these situations to slip into a spiral of negative thoughts about never being able to repay the sum and remaining forever shackled by our loans. The hope of a debt-free future continues to fly further and further away.
However, that brilliant Prophet of Arabia, the Holy Prophet Muhammadsa, who was truly a mercy to all mankind, a refuge for the needy, and a source of comfort for the despairing, never left his followers without a solution to their every problem. We find he has elucidated for us the path of deliverance from these dire circumstances with the following non-exhaustive prayers:
Prayer 1: It is narrated by Hazrat Aishara that Allah’s Messengersa used to invoke Allah in the prayer saying:
اللَّهُمَّ إِنِّي أَعُوذُ بِكَ مِنَ الْمَأْثَمِ وَالْمَغْرَمِ
“O Allah, I seek refuge with you from all sins, and from being in debt.”
Someone said, “O Allah’s Messengersa! (I see) very often that you seek refuge with Allah from being in debt.” He replied, “If a person is in debt, he tells lies when he speaks, and breaks his promises when he promises.” (Sahih al-Bukhari, Kitab fi al-istiqrad, Bab man-ista’adha min ad-dayn, Hadith 2397)
Prayer 2: It is narrated by Abu Sa’eed that he heard the Messenger of Allahsa saying:
أَعُوذُ بِاللَّهِ مِنَ الْكُفْرِ وَالدَّيْنِ
“I seek refuge in Allah against Kufr and debt.”
A man said: “O Messenger of Allah, are you equating debt with Kufr?” The Messenger of Allahsa said: “Yes.” (Sunan an-Nasa’i, Kitab al-ista’adha, Bab al-ista’adha min ad-dayn, Hadith 5473)
Prayer 3: It is narrated by Anas bin Malikra that the Prophetsa used to say:
اللَّهُمَّ إِنِّي أَعُوذُ بِكَ مِنَ الْهَمِّ وَالْحَزَنِ، وَالْعَجْزِ وَالْكَسَلِ، وَالْجُبْنِ وَالْبُخْلِ وَضَلَعِ الدَّيْنِ، وَغَلَبَةِ الرِّجَالِ
“O Allah! I seek refuge with You from worry and grief, from incapacity and laziness, from cowardice and miserliness, from being heavily in debt and from being overpowered by (other) men.” (Sahih al-Bukhari, Kitab ad-da’awat, Bab al-istiadha min al-jubni wa al-kasl, Hadith 6369)
Prayer 4: It is narrated by Ali ibn Abi Talibra that a slave came to him and said he could not fulfil his obligation and requested his help. He said: “Shall I not teach you words that the Messenger of Allahsa taught me? If you had a debt similar to the mountain of Sir, Allah would fulfil it for you. Say:
اللَّهُمَّ اكْفِنِي بِحَلاَلِكَ عَنْ حَرَامِكَ وَأَغْنِنِي بِفَضْلِكَ عَمَّنْ سِوَاك
“O Allah! Suffice me with that which is lawful against that which is prohibited, and make me independent of all those besides You.” (Jami` at-Tirmidhi, Kitab ad-da’awat ‘an rasoolullah salla-Allahu alaihi wa-sallam, Hadith 6369)
Prayer 5: It is narrated by Suhail that Abu Salih (who used to narrate it from Abu Huraira who narrated it from the Holy Prophetsa) used to admonish us to recite the following before going to sleep:
اللَّهُمَّ رَبَّ السَّمَوَاتِ وَرَبَّ الأَرْضِ وَرَبَّ الْعَرْشِ الْعَظِيمِ رَبَّنَا وَرَبَّ كُلِّ شَىْءٍ فَالِقَ الْحَبِّ وَالنَّوَى وَمُنْزِلَ التَّوْرَاةِ وَالإِنْجِيلِ وَالْفُرْقَانِ أَعُوذُ بِكَ مِنْ شَرِّ كُلِّ شَىْءٍ أَنْتَ آخِذٌ بِنَاصِيَتِهِ اللَّهُمَّ أَنْتَ الأَوَّلُ فَلَيْسَ قَبْلَكَ شَىْءٌ وَأَنْتَ الآخِرُ فَلَيْسَ بَعْدَكَ شَىْءٌ وَأَنْتَ الظَّاهِرُ فَلَيْسَ فَوْقَكَ شَىْءٌ وَأَنْتَ الْبَاطِنُ فَلَيْسَ دُونَكَ شَىْءٌ اقْضِ عَنَّا الدَّيْنَ وَأَغْنِنَا مِنَ الْفَقْرِ
“O Allah! the Lord of the Heavens and the Lord of the Earth and Lord of the Magnificent Throne, our Lord, and the Lord of everything, the Splitter of the grain of corn and the datestone, the Revealer of the Torah and the Gospel and the Holy Quran, I seek refuge in Thee from the evil of everything Thou art to seize by the forelock.
“O Allah, Thou art the First, there is naught before Thee, and Thou art the Last and there is naught after Thee, and Thou art Evident and there is nothing above Thee, and Thou art Innermost and there is nothing beyond Thee. Remove the burden of debt from us and relieve us from want.” (Sahih Muslim, Kitab al-dhikr wa al-du’a’ wa al-tawbah wa al-istighfar, Bab ma yaqulu ‘inda al-nawmi wa akhthi al-maj’ah, Hadith 2713a)