What is the legitimate Islamic way to pay off accumulated debts, and is it permissible to resort to Tawarruq or to advertisements that pay off debts with interest?

The summary of the answer to this question is in three points:

1. What you have done in the past by taking interest-based loans necessitates sincere repentance, characterized by regret, seeking forgiveness, and resolving not to return to such acts. It is not obligatory to repay the loans before their due date unless doing so eliminates the interest and is feasible.

2. If you find an Islamic bank that conducts a Tawarruq transaction with you for an amount exceeding your debts, allowing you to repay them and benefit from the remainder, there is no objection to that, and the bank's request for collateral does not affect it.

3. It is permissible to buy a car from a showroom, even if at a price higher than its immediate value, and then sell it to whomever you wish. The fact that the showroom sells it for more than its market value does not matter, because deferred payment has a share in the price. However, it is not permissible to sell the car back to the same showroom from which you bought it by prior agreement, because that falls under the forbidden 'Inah sale.