Do I Have to Pay Zakat if I Have a High Income But I Use All of My Savings to Pay Credit Card Debt?

Hanafi Fiqh

Answered by Sidi Faraz A. Khan

Question: What’s the ruling in paying zakah in my situation? I am earning decent wages, however I have this debt for my credit card – may Allah forgive me. I don’t use this card anymore, I just want to get rid of it as soon as possible, therefore, apart from taking some for food, petrol, and bills, I transfer the rest of my wages to pay my credit card. therefore I don’t have any savings at all. So far so good alhamdulillah that i can manage to reduce it bit by bit. So, how should I calculate my zakah?

Answer: Assalamu alaikum wa rahmatullah,

I pray this finds you in the best of health and faith.

The basis of the obligation of paying zakat is owning wealth that amounts to the quantum (nisab), for one lunar year. [Hadiyya ‘Ala’iyya]

The current value of nisab can be found on this website [use the value based on gold]:

At the time of writing this answer, the nisab is $4222.64.

As long as you don’t have that much saved at the beginning and end of the lunar year, you do not owe zakat. You should continue paying off your debt, while taking out enough money for your basic needs and expenses.

And Allah alone gives success.


Faraz A. Khan

Checked & Approved by Faraz Rabbani