How can one balance repaying debts and living expenses, taking into account the principle of repayment according to one's capacity?

A Muslim must be diligent in repaying their debts, because Islamic law has emphasized the gravity of debt and the necessity of clearing oneself of it. For the martyr, every sin is forgiven except debt, and whoever dies owing a debt will have it settled from their good deeds.

The principle for prioritizing repayment is to first cover essential expenses, then whatever remains goes to the creditors. It is not permissible for one to give charity in a way that harms the ability to repay debt. Immediate debts must be repaid before deferred ones.

One should follow the Quranic financial policy of neither extravagance nor miserliness, and expenses should be in accordance with one's financial capability. This is because economy and good management protect one from falling into debt, as most debts are caused by spending money on luxuries.