If all money is created as debt that must be repaid at interest - with money that is created as debt to be repaid at interest - with money - ad infinitum, how can the world ever get out of debt and what do central banks do with the interest collected?

Effectively, Central Banks can create and destroy money at will, by lending or not lending money to others, usually commercial banks. But when they create money, other banks can effectively multiply that money as they need. If the Central Bank creates too much money, inflation will decrease the value of that money, and the distorting effects of the inflation will harm the economy becasue people will be impelled to spend before the value is destroyed rather than save. It it creates too little money, deflation will increase the value of the money and harm will be done to the economy because people will not be able to raise money for new investment.

But don't think that money "is" anything. Money is an illusion thatn we have all agreed to believe in. As long as we believe that people will accept money in payment for goods and services, it is money. When that belief fails, money instandly loses its value. So the Central Bank just has to manipulate this illusion that we have all agreed to believe in in such a was as not to disillusion us.

Yes, it's a vicious, corrupt cycle. The Fed's wealth increases every time they create money to lend to government(s) or banks. We basically give money to the Fed which lends it at full face value plus interest back to us. The whole conspiracy is designed to gradually deplete America's wealth while elevating third world countries' economies, while making the illegal owners of the central banks richer than the rest of the world combined. Google "illuminati" for more information.

There in lies the paradox. There is NO possible way that the world can get out of debt. Money is created FROM debt. That debt incurs interest, the interest cannot be paid back because there isn't enough money created to pay it. So more money is created, (debt) which needs to be paid back plus interest. Again, the amount of money needing to be paid back is ALWAYS more than the money that exists.
Its a neverending circle. It is modern slavery. Only people aren't educated enough to know how they have become slaves by the monetary system.

...as you may be implying, solutions within the descending equation may, at best, alter the problem's appearance but are not, in fact, efficacious...

...the solution then steps outside of the mathematical conundrum you've presented in your question...; debt, like anything else, can be forgiven....