Could debt cause inflation instead of deflation?
Yes it can.

If debt originates from the banking system, then it potentially has a side effect of money creation. Whether or not money is actually created when a bank loan is made depends on the banking system's regulatory framework, and the lending policies of its banks, and these can vary widely. 

However if there is net excess of bank lending over bank loan repayment and loan default, then money creation is occurring, and the additional money can and indeed usually does, result in inflation.