There is a direct link between debt and depression. “People in debt are three times more likely to have a mental health problem than those not in debt” says new research by the University of Southampton (UK). But the research also mentions that these statistics may include a chicken-egg component. That is, there may be a link between having depression and being in debt as well as the link between being in debt leading to depression.
For example, Manny is in debt and falls into depression because of it. On the other hand, Maria is in depression and loses her job because she misses too much work, leading to her debt. I know from personal experience that when deeply depressed, it was difficult to even pay the bills, though I had the money to do so.
The moral of the story: if you are deep in debt, seek counseling to help guard you from depression.