Is it obligatory to repay a debt to friends who are not in need, or is it permissible to give charity or lend to needy relatives, if it is not possible to do both?

Debt is a right belonging to its owners, and its repayment takes precedence over voluntary charity. Some scholars have gone as far as to prohibit charity from one who owes a debt, if it prevents the repayment of that debt. This is what Al-Nawawi authenticated, because repaying a debt is obligatory, and thus it takes precedence over what is merely sunnah (recommended). If a person has enough to pay off their debt and still has a surplus, then there is no harm in giving charity. However, if they only have enough to repay their debt, and it is due immediately, then taking the initiative to repay it is paramount to clearing one's obligation. One can console those in need from what is left over after repaying the debt, or intercede for them with those who are well-off.