Everyone feels overwhelmed and discouraged sometimes. Or sometimes life gets in the way, with circumstances out of your control.
Take a break if you need to, but don’t give up hope. Put your half-finished mss or picture book dummy in the drawer for now and find other ways to keep that part of your creative soul on simmer. Maybe have a small notebook with you all the time, and keep track of story idea snippets? Quick notes about title ideas? Character traits? Settings?
Just don’t give up.