One of the most important aspects of managing personal finances is having a good debt management program in place. The fact of the matter is that if you are successfully managing your debt you should have little to no debt to worry about. The unfortunate thing is millions of Americans do not know how to do this and are experiencing cash flow problems that are approaching crisis proportions.
The problem many people have when it comes to accumulating debt is distinguishing between their wants and needs. Needs always come first because you need those to survive. Things such as shelter, food, clothing, and reliable transportation are things that just about everyone needs. The problem many people have is coming to terms with the fact that even needs can be turned into wants, and this is where they get in trouble.
As an example think about buying a car. Nearly everyone needs a form of good reliable transportation, but no one needs a $400 a month car payment. Wanting to buy a $35,000 car because you think you need one when you make $40,000 a year makes no sense. This is particularly true when you consider that