Salam I am in debt because the loan I took, and also I feel Im I must pay some people, because of my recommendations they lost money with my frriend who cheated them and me also. I also have saving money on which I am paying zakat. I am very confused whether I am doing the right thing by paying zakat or should I settle my loan and compensate those people who lost money because of me with the zakat money. Plse help me asap I very depressed on this.

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

We have already issued Fatwa 85789 clarifying to you that you are not responsible for the money of the other people that was lost, so there is no need to worry and grieve about this.

As regards Zakah, you should repay your debts before paying the Zakah, then if what remains from your money reaches the Nisaab (i.e. the minimum amount liable for Zakah, i.e. the equivalent of 85 grams of gold) by itself or in addition to other money or tradable items which you possess, then you should pay Zakah on this remaining money. In which case, you should pay Zakah on this money by spending it on the eight categories of people who are eligible for Zakah as discussed in Fatwa 88368.

Finally, it should be noted that it is not acceptable for you to pay the Zakah to the people whom you mentioned in the question unless they are among the categories of people who are eligible for Zakah, like if they are poor, destitute or indebted…etc.