Sadaqah before paying debt is not allowed if it would stop you from repaying what you owe (Islamweb), because paying debts is compulsory while voluntary charity is not. If the debt is deferred and the charity does not affect repayment, there is no harm in giving, especially a small amount.
- A debt that is due, or charity that harms repayment: pay the debt first.
- A deferred debt you can repay on time: there is no harm in giving.
- Giving with the intention that Allah eases your debt: allowed, and the debt still stands.
- Zakat has a different ruling: look at what remains after the debt.
What is the ruling on Sadaqah before paying debt?
The ruling depends on the state of the debt and on how the charity affects repayment. If your debt is due, or the money you hold is needed to settle it, repayment comes first and you should not give that money away. Some scholars allow charity as a general rule, but the priority goes to what is compulsory.
If repayment is not due immediately, it does not have to take priority over charity, as long as you will be able to repay on time.
Your creditor also has a say. If the creditor agrees to a delay (in Arabic), you may give what you can. Otherwise, settle the debt first and give from what is left.
The Prophet (ﷺ) said, “Whoever takes the money of the people with the intention of repaying it, Allah will repay it on his behalf, and whoever takes it in order to spoil it, then Allah will spoil him.” (Sahih al-Bukhari)
Can you give Sadaqah with the intention of settling a debt?
Yes. There is no objection to giving charity with this intention (in Arabic), as long as it does not harm repayment. Charity is a good deed that brings a person closer to Allah, and it is best when the intention is sincerely for His sake.
Charity does not replace repayment, though. The debt remains owed to its owner until it is paid.
Does someone in debt have to pay Zakat?
Zakat is an obligation, so its ruling differs from that of voluntary charity. Debt can be deducted from zakatable wealth if you have no surplus assets, such as a spare car or property, that could pay it off. If surplus assets cover the whole debt, you do not deduct it, and if they cover part of it, you deduct only the remainder. You then pay Zakat on what is left, provided it reaches the nisab (Nisaab).
If your money comes from your salary, read Zakat on a monthly salary.
How do I balance paying debt and giving charity?
- List what you owe, and note what is due now and when the rest falls due.
- Set aside enough of your income to repay on time before any voluntary spending.
- Give from what remains, even a little, as long as it does not affect repayment.
To learn more, read about the virtues of Sadaqah and who can receive it.
Sadaqah and debt: short answers
Does Sadaqah pay off a debt?
No. The debt remains owed until it is repaid, though you may give charity hoping that Allah eases its repayment.
Can a person in debt give charity?
Yes, if the debt is not due and the charity does not affect repayment. If the charity would stop them from repaying, they should not give it.
Which comes first, paying debt or Sadaqah?
Paying a debt that is due comes first, because it is compulsory and voluntary charity is not.
Paid what you owe and have money left? Give Sadaqah now
