Q&A: Interest or Debt?
Interest or Debt?
Question
Hello, honorable Rabbi,
I owe my sister money, and now she is asking for money, and I want to know: if I give her 20, for example, and she deducts 40 from my debt, is that considered interest?
Answer
I didn’t understand. Why would she deduct 40 for you? Are you repaying her earlier than was agreed? As I understand it, this is indeed interest.
Discussion on Answer
Interest is paying more than the debt, and here he is paying less, so why would there be a problem?
You could understand it if we say that the early repayment is considered like a loan until the time of repayment, but that seems novel.
That’s how I understood it. But there may indeed be room to view it as you suggested. It needs thought. You should know that according to my approach, this is fixed interest, meaning a Torah-level prohibition.
Yes, I am repaying early if I give her 20 now.