u r right, i did not understand the article correctly.

Hossam, the title is misleading if you don't know what it's about. It should read: "The New Regulations Regarding Minimum Credit Card Payments Scare Banks". Banks LOVE minimum payments. The less you pay, the more money you still owe them, the more interest you pay, the more profits they make.

This article says that banks are fighting the SEC's new regulation which forces banks to increase the minimum payment and hence helping people get out of debt quicker.

I don't think Muslims should have this problem since we ought to always pay everything in full each month.

Loans (mortgate, educational, car leases, etc.) are different than recurring credit card debt in several ways.

it seems interest is not the best solution..
Banks Fear Minimum Credit Card Payments : news.yahoo.com

thanks izz i got to try my best.

ummm so the payments that you make in the beginning of any of your loans is actually the interest part being payed to the bank?
don't they ask us to pay for the Min. ?

yah we got to be careful using these credit cards. they made credit cards since people don't like to see their cash money spending. therefor why not creat a card so they don't see their cash money spending. it's all psychology.
all u have to do is slide ur card :) and bingo .. ur problem has been solved.

yeah i'm kinda the same way, i hold out on buying anything unless i got the entire amount, rabina ma3ak new cairo, that's rough, another thing of advice is also manage your money, people with higher credit will be offered lower interest rates, not saying it's good, but you'll be paying less if youever get into that positon when it comes to loans, that and also with loans, i found out today that the payments that you make in the beginning of any of your loans is actually the interest part being payed to the bank, so it would behoove you to pay it all upfront, or in installements but pay it off fast, because the bank has already made thier share

well the government can change tax sales from 6% to 9% and give the 3% extra tax to the banks to fight interest.

it's not perfect solution but that just an example.

the reason why there is interest because we believe it's the only way.

meya meya ya izzy.

until now i refuse to take loan education. i am very much pay my education expenses from my own pay check *: (financial Aid may help with half the money but i don't garantee it all the time) plus helping my dad with his credits as well.
in another word sahebkom beyetbahdeel lol

lol, alright, i'll try to simplify what i said, ok, basically the general idea of what i said was that although your not going to elminate the interest you pay on a loan, your only going to pay less interest (unless you drop the entire amount of the loan within the first month, but then that's like buying it cash isn't it?) just like muslimaegyptian said, in the end your only reducing the amount of interest your paying, making the legal loan sharks we call banks that much poorer lol, now i wuold bet you do get bad deeds for paying interest, but i think everyone would try to take a chance to reduce the amount of bad deeds you'll get, so unfortuantly there is no real win-win situation unless you bank with an islamic bank, but from what i've heard, the verdicts still out with them, here's the problem..

back in the prophets time, they had lenders and so on, BUT, according to this buisness lecture i went to, the lenders only lended money to buinesses, there really was no such thing as home morgage and what not, dang, you find a nice spot, stack some rocks and wood in the shape of a house, and bam, you got yourself a home lol, ahh the good old days, but really, the way the lenders made thier money was to take a certain percentage of the buisnesses profit (and make some profit themselves), so if a bank were to completely charge no interest or any deviation of it, they'd break even all the time, which a bank being a buisness, is not good thing, so the banks are ALWAYS going to find a way to get thier money

about the credit cards, a little tip, best thing to do is obviously make your payments on time, but also, when they say your money's due, most of the major banks have like a 5-10 day grace period for you to pay before they charge you interest, so just a little inside scoop lol

masreya i believe anything goes under " i have no other choice" can be excused.

i was thinking of a solution such as the government may support banks from the Tax money or any other source of money to not force interest on people.

but comes another question, what if the person who barrow the money did not pay his money back in time?

this is how i look at credit cards.

imagine that you are walking with someone that you don't even know ... and you keep barrow money from him .... and then he came to you the next day asking for his money plus interest.

as nasty as it sound.
so everytime you want to use your credits to buy something that you don't really want, think of what i said.

Masreya or i can just sell my kids to rich families for a exchange to pay my credit loan ;P

Izzay got very nice idea, i haven't thought about it myself.
what he meant is to pay more money over your monthly payment which will help to reduce interest.


maybe another solution is just buy a craby house with cheap price and try to fix it.

Brother Izzy...ma3lesh, for the money-challenged, can you reword your idea in your last post.. s l o w l y :)

And is this islamically sound though? It sounds like we're just reducing the interest paid...but still paying interest :(

May Allah help us make choices that will please Him insha'Allah living in this country :(

It's such a tough issue that I'm dealing with it myself right now...and trying to find a solution that will bring me peace...which hasn't happened yet..

another thing, since i work in a bank, there are ways to avoid paying interest, not completely, but close, say you buy a house and you get a loan for $100,000, the interest rate is 6%, and your montly payment is say $1000 or somthing, now when you pay those monthly payments (the minimum is $1000) and interest is included on there (you'll actually end up paying $106,000 when you finished with the loan) now if you only pay the monthly payments (say you have $20,000 left ot pay on the loan), your going to be charged interest on the $100,000, not the $20,000, so your paying ALOT more in interest, what you can do is pay in principle, now this is including the monthly payments, say you make you $1000 monthly payment (you have $99,000 left on the loan), you pay in priciple an extra $1000, not only will it bring down the money you owe(now $98,000), your only paying the 6% interest on $99,000 instead of the 100,000, which over time will be considerably less than paying without principle, so in conclusion, there really isn't a way getting around it (unless you pay cash for everything) but there are ways to not pay as much interest by paying in principle, hopefully this helps out

i actually went to this lecture with a man talking about sialmic shri'ah in lending, and there is a EXTERMLY fine line with what's halal and haram in this, like the the words you say can make it haram or halal, a islamic bank (bank feisal fore example) obviously doesn't charge interest, BUT, their a differnt name for it, called inflation, they charge you for the inflation during the time of your loan, say you borrow $10, and say currency inflation goes up, therefore (after all calculations and so on) they can come and say now you owe us $12, and if inflation goes down, you may own 8 dollers, but then again, inflation never really goes down does it? but be careful as well, islamic banks can be considered users as well, this man talked about a muslim bank in the US (i apologize, i forget the name) where they charged a extra 1% on islamic loan contracts, which is userythis may or may not have been of help, and Allah knows best, but ike new cairo siad, i guess the best way is really to buy everything cash when possible

Ayman - Did you ever read the terms on those halal loans? They still charge you interest; only under a new name (aka Fees)... but ofcouse like u said, Allah knows best ;)

Masreya. maybe one of the solution is to go live with my aunt and let the kids play in the street running behind cars with naked feet ( if i ever had a family) lol (H) .
that may help me save some money .

no doubt that we don't have an answer.
i have done an expriment on myself which i promised myself to never use credit and only use my cash/depit money for any purchase for only one month.
it helps me alot to balance my budget and even though i was struggle with money, i felt so good that there will be no credit Bills waiting for me.

say someone barrowed $ 100,000 from me as a promise he will pay it to me back within 15 years.

in islamic way he will have to pay me $555.5 monthly.

questions are in my mind:

1) how can i pay my employments who will be responsible of the transactions?

2) does providing service Fee concider to be Reba?

and God said:

"All?h will destroy Rib? (usury) and will give increase for Sadaq?t (deeds of charity, alms, etc.) And All?h likes not the disbelievers, sinners. "

Abu Hurairah r.a. reported that the Prophet said :

"A time will certainly come over the people when none will remain who will not devour usury. If he does not devour it, its vapour will overtake him. " .. the hadith means there is time were it will be very hard to avoid Reba."

Abu Hurairah radiyallahu anhu reported that the Messenger of Allah said:

"I came across some people in the night in which I was taken to the heavens.Their stomachs were like houses wherein there were serpents,which could be seen from the front of the stomachs. I asked :O Gabriel! Who are these people? He replied these are those who devoured usury. "

Al-Khudri radiyallahu anhu reported that the Prophet said:

" Gold in exchange for gold, silver in exchange for silver, wheat in exchange for wheat, barley in exchange for barley,dates in exchange for dates, salt in exchange for salt is in the same category and (should be exchanged) hand to hand, so whoever adds or demands increase he has practised usury. The giver and taker are the same. "