Consumer spending accounts for two-thirds of America's greater economy. Personal spending is absolutely essential to the survival and health of capitalism. Consumer debt might be avoidable, but consumer spending in itself is a must-have for a capitalistic economy to even function. Government and business spending are not enough in themselves.
I do think that both consumer debt and personal spending is a necessity when it comes to the survival of capitalism. For one, debt keeps the for profit banks and corporations raking in vast amounts of money, and spending, as always, is vital to any form of economy. People have to spend.
No, I do not think that consumer debt and person spending is necessary to ensure capitalism's survival, because if a person spends their ways into debt, they will not have a way to buy things later. A person should live without debt, and then they can pay for things when they want it.
The only thing in capitalism that requires consumer debt is the debt industry. The rest of the market will operate just fine after about a year of adjustment if personal credit cards are no longer available. It is understandable that some large purchases may still have to be done on credit, but for daily personal spending, credit is not a reasonable option.