Are fixed term interest free payments Halal?

Several credit lenders offer a fixed term interest-free period, i.e., pay in 3 months interest-free. Do You think this is halal? or should we avoid ribawi systems altogether?

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I think perhaps this may follow a similar line of debate as the discussion on whether it’s okay to “have a credit card as long as you pay it off before it ever leads to interest” and I know that there’s arguments on both sides of permissibility.

Does anyone know if interest would be involved if you exceed the payment period (or for any other reason)?

It would I think, don’t understand why it wouldn’t

I don’t see why it would be a problem if you intend to pay it back

I am not that knowledgeable in this subject matter, I have heard it is always best to pay everything up front, but I don’t see an issue of fixed-term interest-free. If you want something and you don’t have the money for it, why would it be wrong?

From experience, they give you leeway, in the sense that you have time to pay it and you can offer them an explanation. Everyone has difficulties and stuff so they are understanding, but if you over step and take too long, there will be fines, bailiffs may come to your home or even court.

I wonder if there are any videos or explanations anyone has on this, would love to know and maybe try and discuss it. II can’t imagine someone saying its haraam but I have been wrong many times in the past. I have also been convinced why too, I am happy to explore!

I agree that people should, unless there’s exceptional circumstances, not be buying things they can’t afford. Schemes like this encourage people to get into debt

I did have an interesting thought though that in a way this is similar to phone contracts that most of us have? Where either for the plan or the phone too, we pay monthly for a fixed term

So it’s not so much a debt as it is a rental with eventual ownership as is in this case

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Agree it would be helpful to see on this topic

For buedgeting reasons I would say contracts are v useful

In terms of totally avoiding riba, I understand the view and it’s a utopia.

Yeah I can understand it for managing cash flow.

Though often for example it’s a lot cheaper to buy a phone outright and then get a sim only contract. You actually end up saving hundreds over the years by doing this

Also there’s a fine line between managing cash flow and just buying what you can’t afford

Yh I agree, also, long-term issues as well such as the mental stress of paying it, you are not guaranteed a job for the next 20-40 years or until retirement, and random expenses too. It is all very very difficult to maintain mentally

I got a sim only contract and have had my phone for 3 years, as an adroid user, my phone lasts for a long time! I would definitely go for this, I know of people who got a proper contract and paid almost double the amount for what the phone actually costs.

going back, has anyone actually answered if these things are permissible or not? I am inclined to say there is no issue but have been wrong many times before. Need some clarity!

As an iOS user I can also testify that phones can last for many years beyond the length of the contract!

The thing with interest free deal is that it promotes unhealthy spending habits and you are also promoting a riba based system.

Phone contracts aren’t the same as interest-free periods on a credit card. You are more likely to fall into interest with a credit card. Mobile phone contracts don’t charge late fees