When compared to countries with lower national debt, such as the United Kingdom and Sweden, America appears to be built on materialistic foundations. American materialism leads society to believe that the more things you have, the happier you will be. Many Americans insist on ownership of goods and services, despite how expensive some may be. Even if an individual does not have the necessary funds to afford such goods, he or she can still purchase them using credit. Credit is money that a bank or business will allow a person to use, as long as they repay it in the future. The existence of credit encourages people to spend more than they can afford, ultimately making borrowers slaves to creditors. Credit abuse results in debt, which is a problem that affects nearly all Americans for most, if not all, of their lives. Bad credit and debt are among the worst problems in America because they contribute to a progressively unstable state in the economy and prevent many Americans from achieving their financial dreams. There are different types of debt, although they all contribute to the status of the country only itself. One of the most common types of debt Americans have is personal debt. This type of debt is the result of purchasing goods whose value decreases over time. Such goods include: new cars, clothes, furniture and credit card purchases – short-term pleasures. Investment debt, however, is one of the most acceptable types of debt. This type of debt comes from borrowing to finance businesses, education, or even homes – assets that will likely increase in value over time. Of course, both types of debt are equally difficult to repay. Debt ranges from mortgage payments, to ca... half the paper... from getting into debt. People who are entrenched in debt, however, should adopt a variable spending reduction strategy and put the extra money toward debt payments. Similar to the proposed balanced budget amendment, this ensures they lose less and make more money. Debt is slowly pushing the American economy into an unstable state. This will ultimately result in a dramatic increase in taxes, which will subsequently reduce the overall budget of most Americans. The national debt grows even more when people abuse credit, accepting debt into their lives. Unless America focuses its efforts on discouraging materialism by spending less money than its overall income, it will move further into debt, risking even higher taxes and bankruptcy. Our nation must overcome its entrenched materialism before it can truly expect to improve its economic status.