What is the ruling on Zakat if the amount of money saved is less than the debt owed?

Scholars differ regarding the effect of debt on zakat. The Shafi'is hold that it does not preclude zakat. The Malikis believe that wealth exceeding one's needs should be offset against debt. If the wealth equals or exceeds the debt, the entire amount is subject to zakat. If the debt exceeds the wealth, the excess debt is deducted from the wealth. As for the majority of scholars, they hold that debt precludes zakat. So, if you possess hidden wealth (such as cash, gold, silver, or trade goods) and you owe more than that wealth, then according to the majority, you are not liable for zakat. If you own assets not subject to zakat (such as cars and belongings beyond essential needs), offset them against your debt. If a zakatable amount (nisab) remains after this and a year (hawl) has passed, then zakat becomes obligatory on it. Essential needs are basic necessities like food, drink, housing, and suitable transportation.