The employee you describe is avoiding situations for a reason, but it is not possible to say why. There is a treatable condition called Panic Disorder that has a debilitating effect on the performance of otherwise competent employees. The disorder is associated with palpitations, trembling or shaking, shortness of breath, and a fear of losing control or going crazy. Other symptoms may include chest pain, dizziness, or even a fear of dying. Such sensations come on suddenly for victims with this disorder and are often associated with the events you've listed.
Avoidant behavior is a means of coping and can severely interfere with occupational functioning.
FSAP counselors are resource experts in addition to the other roles they play in helping employees and providing related management consultation. This includes helping your employee find the most appropriate resource for resolving the debt crisis. There may be many ways to approach this problem, including consumer credit counseling services, legal aid, financial planning assistance, and use of legitimate debt or credit service firms. A debt crisis may be symptomatic of many types of personal problems. It is important that any contributing problem not be ignored.