Is It Haram to Default on Credit Card Debt Due to Genuine Financial Hardship?

Walekumussalam warahmatullahi wabaraktuh,

First: The use of a credit card

If this is a conventional credit card that charges interest (riba) when the outstanding balance is not paid within the specified period, then according to the Hanafi school of jurisprudence, such an agreement is not considered permissible because it contains a condition involving riba. Therefore, a Muslim should avoid using such credit cards as much as possible. If someone is already using one, they should make every effort to exit this arrangement as soon as they reasonably can, pay the outstanding balance promptly to avoid further interest, and sincerely repent to Allah and seek His forgiveness.

Second: Is it haram to become a defaulter due to genuine financial hardship?

If the facts are exactly as you have described—that when you used the credit card, you genuinely intended to repay the debt, had no intention of deceiving the lender or avoiding repayment, but later became unable to pay because of being scammed, losing your job, and falling into severe financial hardship—then merely being unable to make the repayments due to this genuine inability is not, in itself, sinful.

However, the original debt remains your responsibility, and whenever Allah grants you the financial ability, you are obligated to repay it.

On the other hand, if a person has the ability to repay but deliberately refuses to do so, or intentionally becomes a defaulter simply to escape paying the debt, then this is unlawful and a grave sin. The Messenger of Allah ﷺ said:

«مَطْلُ الْغَنِيِّ ظُلْمٌ»

(Sahih al-Bukhari, Sahih Muslim)

He ﷺ also said:

«مَنْ أَخَذَ أَمْوَالَ النَّاسِ يُرِيدُ أَدَاءَهَا أَدَّى اللَّهُ عَنْهُ، وَمَنْ أَخَذَهَا يُرِيدُ إِتْلَافَهَا أَتْلَفَهُ اللَّهُ»

(Sahih al-Bukhari)

Therefore, if you are genuinely unable to repay at present because of circumstances beyond your control, you will not be sinful merely for this inability. Nevertheless, the debt remains payable whenever you are able.

You should also make every reasonable effort to contact the credit card company, explain your financial circumstances, and seek lawful solutions such as a repayment plan, additional time, or, where available, a reduction or waiver of interest. Doing so demonstrates your genuine intention and sincere effort to fulfil your financial obligation.