Should a debtor offer a sacrifice on Eid, or is it better to pay off his debt?

Paying off debt takes precedence and is more obligatory than offering a sacrifice (Udhiyah), because settling a debt is an obligation, whereas the Udhiyah is a confirmed Sunnah. Furthermore, settling a debt absolves one's responsibility, and debt is a right of people, while the Udhiyah is a right of Allah Almighty. Moreover, the persistence of debt carries a grave risk for the debtor on the Day of Judgment. An exception to this is if the debt is deferred for a long term, and the debtor is reasonably confident in their ability to repay it when due, or if they have collateral sufficient to cover their debt; in such cases, there is no objection to them offering a sacrifice.