Problem
This plugin is very powerful in debugging tests. It will pause the execution rather then fail the test. We can simple hit the resume button, once we resolve the issue.
Prerequisites
The power debugger plugin can be downloaded from the Firefox add-on manager, using the following url: https://addons.mozilla.org/.
Solution
There is an extra button visible in the toolbar of Selenium IDE after installing the plugin. We can see the button in the following screenshot: 
We can hit the red pause button any time and the test will pause on a failure. We can continue the test by pressing the resume button.