Now this is the area that gets most people in financial difficulty in the first place. There is a huge difference between wants and needs and if you honestly look at your financial position and consider how you have built up the debt that you are currently faced with you might just find that it is due to over expenditure on wants. Needs are those factors that are required for you to lead a healthy happy life on a daily basis to maintain good health in mind and body for you and those whom you are responsible for. Good food, shelter, health care - These come under the banner of needs because these are the simple things in life that you need to get by. DVD players, alloy wheels on your car, the latest designer clothing, cigarettes etc - These are wants and there is certainly no need to have them in your life. These are the things that get people into trouble. These are the things that cause your debt and stress and detract from your lifestyle. These are the things that make people miserable at the end of the day because you still have to pay for them, you don't need them and you certainly don't need the debt that comes with them. Take a look around your house and see how many items there are that fall under the category of wants, and then ask yourself how often do you use these items and what sort of pleasure have they given you compared to the distress that you are now feeling with the debt you have to pay back. Sure there might be some items that you still get pleasure from such as playing on your Playstation but consider once again how the time that you waste on the Playstation could be better spent on something more productive or something that could improve your health and well-being such as a walk or a jog in the park. Can you convert some of those items into cash? Of course you can and if you aren't using them then wouldn't it be better to sell them and put that money towards your debt. Just understanding the difference between wants and needs might be all that you need to turn your life around and ensure that you never become overburdened with debt again.