In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
Answering your question, Dr. Jasser Auda, Professor and Al-Shatibi Chair of Maqasid Studies at the International Peace College South Africa, states:
Making Umrah while in debt is a matter of priorities. And it is a matter of personal circumstances.
Paying back the debt is an obligation. And making Umrah is a recommendation and an optional deed.
It is more important in Islam to pay back the loan because this is an obligation vs. making the Umrah which is a recommendation.
However, if the person’s circumstances confirm that he or she is able to accumulate the amount by which he can pay the debt, he can make Umrah before paying back the debt.
So, there is no single rule for the issue of making Umrah while in debt. But if the person is not capable of making Umrah and paying back the debt at the same time, then he/she has to make a choice to pay back the loan first as it is an obligation.
This is the requirement and Allah the Almighty will provide him or her with His bounties so that he/she can make Umrah later.
Almighty Allah knows best.