I used to be like you, and it’s a mistake. Employees tend to confuse kindness with exploitable weakness. Not all, but usually so.
That employee is in debt vs you. Whatever home problems, it’s their duty to solve them.
They are not performing normally and putting a strain on you as well. Hire more and tell them to clean their act. If not, fire them .
Side note employees will appreciate more a strong grip where you can be reasonable in important situations, rather than having a relaxed permanent situation where they become too used to it.
We are a predatory species. That is our normal. So they will take advantage of all they can get, deserved or not. Just like kids always test our limits like parents. keep that in mind. Your kindness be there, but not apparently.
What do you sell? If I may.