How Can We Avoid Interest Money In The Financial Sector?

[Good-Guy]

Dealing in interest is considered unlawful and forbidden thing in many religions, including Islam. Islamic financial system encourages people to trade in goods fairly and avoid usury and interest. Dealing in interest is prohibited due to many reasons. If we analyses the disadvantages of interest, then we will realise that indeed there is a lot of wisdom behind why the religion prohibits it. Interest usually increases bad debt in a really bad way. Many major countries provide loans to other Tier 3 countries and then they charge a lot of interest. This increases inflation, unemployment, and poverty in those countries. In fact, interest may also damage the economy of many Tier 1 countries as well.

When the federal reserve increases interest, the value of many major trading assets gets destroyed and people suffer from losses. For example, when the federal reserve of United States increased the interest rates, the value of share market also dropped and the cryptocurrency market also crashed in one of the most horrible ways possible. This is something we all are witnessing. An increase in interest rate also burdens the public of Tier 1 countries as well because when people in those countries borrow loans, they have to pay a huge amount of interest money to lenders. In short, charging interest is actually very harmful for economy, so how can we avoid it?

 

[Yusra3]

The key is minimizing or outright avoiding reliance on borrowed money that charges interest. Prioritize funding ventures primarily through sources like your own savings, investments, cash profits, crowdfunding or equity partners rather than credit. If you require a loan, commit to rapidly paying down the balance. Making smart financial choices that use money you already own allows you to steer clear of wasting resources on interest payments.