The biggest debt isn't counted financially though.

Repairing the financial system would mean recognizing forms of debt such as CO2 emissions and crude oil withdrawals. Recognizing these debts would mean a hard effort to stop increasing them and start paying them off. This means people have to continue to die fighting over scraps and not really see improvement in quality of life for a while.

Financial debt is just a distraction from the real debt, which you can't just erase by resetting finances.