Islamic debt consolidation provides an ethical, Shariah-compliant solution for managing multiple debts. It involves obtaining a personal financing or debt consolidation loan from an Islamic institution, which structures the financing to avoid interest. The institution pays off outstanding debts, allowing the borrower to make a single, fixed monthly payment.
This can simplify repayment and potentially lower overall costs. Carefull review of the terms, including profit rate and fees, is essential to ensure the solution aligns with the individual's financial and religious goals.