How debt affects Zakat:
Deduct immediate debts (due within year):
- Credit card balances
- Short-term loans
- Unpaid bills
Do NOT deduct:
- Long-term mortgages
- Car loans (unless due this year)
- Business loans (separate calculation)
Formula:
(Total Assets - Immediate Debts) × 2.5%
If total after debts < Nisab, no Zakat due!
And Allah knows best.