In Islam, the taking and also giving of interest have been expressly forbidden. This presents problems in secular countries, wherein no loan or mortgage is ever done without it. In so far as taking loans that charge interest are concerned, it can only be said that unless it is a life-or-death situation one must stay away from such loans, to avoid the Wrath of Allah.

But what should one do about the interest accumulated in one’s own bank account? This issue is also something that unfortunately affects many of us. What is established is that it is not at all permissible for one to utilize this for one’s own benefit.

To avoid the anger of Allah, one should give the interest money accumulated to charity. This, whilst being the most practically beneficial way of disposing of the money, is not going to be positively rewarding. But due to it being in accordance with Allah’s Will, in that this method of disposal saves one from further sin, it is still beneficial.

Haram Income
Included under this broad heading are earnings generated by not only the sales of Haram items but also Halal items acquired through Haram methods (e.g. lying to get benefits, lying to increase the price of selling items, etc).

Here the method of disposal is to return items to the rightful owners. If this is not possible because the owner is not known or for any other legitimate reason, then the method of disposal is the same as that of interest money.

If one has spent a great portion of one’s life in Haram earnings to the extent that the majority of one’s possessions are of Haram origin, then what is the way of redeeming oneself in front of Allah?

The answer to this is often very difficult to digest. In short, the entire possessions of Haram earnings must be disposed of in the same way that interest is disposed of.

This presents the problem: how then are brothers/sisters in such a situation meant to live? For this the most accommodating way would be that they take into account how much of their wealth is of ill earnings, then turn to a Halal means of income, whatever immediate amount they can dispose of (in charity) they do. Then over as short a period of time as possible, they try to pay off this debt they owe to Allah.