In the public consciousness, mainly material debt is present, although in many cases the spiritual and material debts are consequences of each other, mutually reinforcing each other.
Living in debt means losing our freedom, while our ability to act becomes limited as well as our freedom of thought. Trying to break out of that, the endeavor often leads to sin. After all, in order to get rid of the debts in many cases the subjects use material goods obtained illegally, fraud, or provision of services that are against law or moral.

Narrated Anas bin Malik:
The Prophet (peace be upon him) used to say, "O Allah! I seek refuge with You from worry and grief, from incapacity and laziness, from cowardice and miserliness, from being heavily in debt and from being overpowered by (other) men."
Reference: Sahih al-Bukhari 6369

There are several other hadiths in addition to this.
Prevention is the best. We need to know ourselves, our abilities, so we should know where the limit is, how we are able to repay a loan. We also need to know that debt is a property that has unfortunately a negative presage and, as such, is inheritable. And it is not advisable to give burdens as gifts to our loved ones. (4:11, 4:12)

In Islam, one of the noblest deeds is to clear our relatives and our loved ones, from their debts.
According to our faith our debt management is an action that is judged not only in this world but also in the afterlife, so its settlement is extremely important. Therefore, fleeing from debt to death is not a solution. If a helping outside hand settles a debt, either before or after death, it is considered as Sadaqa (donation). (9:60)
Islam, then, does not divert earthly accounts to the afterlife. We are accountable in this world, too. The regulation of debt settlement is so serious that it is emphasized not only at the level of the Sunnah but also at the level of the Quran. Debt must be recorded and the record must be countersigned by credible witnesses. A pledge must be given in exchange for the loan. If this is not possible, sponsors must guarantee the payment of the debt. Here it is the longest verse of Quran on that:

O ye who believe! When ye deal with each other, in transactions involving future obligations in a fixed period of time, reduce them to writing Let a scribe write down faithfully as between the parties: let not the scribe refuse to write: as Allah Has taught him, so let him write. Let him who incurs the liability dictate, but let him fear His Lord Allah, and not diminish aught of what he owes. If they party liable is mentally deficient, or weak, or unable Himself to dictate, Let his guardian dictate faithfully, and get two witnesses, out of your own men, and if there are not two men, then a man and two women, such as ye choose, for witnesses, so that if one of them errs, the other can remind her. The witnesses should not refuse when they are called on (For evidence). Disdain not to reduce to writing (your contract) for a future period, whether it be small or big: it is juster in the sight of Allah, More suitable as evidence, and more convenient to prevent doubts among yourselves but if it be a transaction which ye carry out on the spot among yourselves, there is no blame on you if ye reduce it not to writing. But take witness whenever ye make a commercial contract; and let neither scribe nor witness suffer harm. If ye do (such harm), it would be wickedness in you. So, fear Allah. For it is God that teaches you. And Allah is well acquainted with all things. (Quran 2:282)

The aya is narrative and tells in detail what to do in case of debts. However, there is one point what I’d like to highlight related to witnesses. Only in case of debt matters the word of one man is equal with two women’s word when they are witnesses. In other cases, man’s and women’s votes are equal (e.g. general referendum or witnessing in front of court) We can see the case of dowry, debt, heritage and other matters how Islam lays down clear passage for mankind. Regarding ladies once they have privilege (dowry) and in other case they have half part of the heritage what man can get. The two complete each other. In order not to lose the right mathematics and calculation Quran gives clear instructions and takes into consideration the features of ladies when they are tempted if money is concerned.

If ye are on a journey, and cannot find a scribe, a pledge with possession (may serve the purpose).
And if one of you deposits a thing on trust with another, Let the trustee (Faithfully) discharge His trust, and let him fear his Lord. Conceal not evidence; for whoever conceals it, - His heart is tainted with sin. And Allah Knoweth all that ye do. (Quran 2:283)