Our response to sin can drag us from close connection with God. This may one reason why guilt may be a Christian's greatest sin. The person's focus moves away from God, God's attributes, their relationship and onto themselves. If a person rehearses in his mind the goodness of God, God receives glory. Such an activity is called "praise." What is it called when a person rehearses his failures in his mind? I think it could be called "anxiety."
There is considerable space in Scripture covering God's treatment of our moral and spiritual failures. We are not condemned. Jesus stands as our defense lawyer before the throne of God.
The enemy wants to steal God's glory. If we fail to obey God's standard.and then become obsessed with how guilty and rotten we are, the enemy has succeeded. Our hearts are not focused on the goodness of God. Our hearts are not focused on the wonder of God's transforming work.
I do not recommend totally ignoring sin. We were designed for intimate fellowship with God. We were given the purpose of being God's partner in world transformation. Sin interferes with both. Sin short-circuits both. We will be more healthy, more whole, more joyful, more resilient and more complete if we reside in the grace and love of God, and in our God-given purposes for life.