Sorta depends: how badly has it deteriorated, how long do you expect to want to use it before doing something more and how much do you want to spend now?
If the driveway has a lot of larger cracks (larger means more than 1/4 inch wide and more than a foot long), is badly "alligatored" and/or has pieces coming loose, then it may really need to be repaved.
There are three kinds of driveway stuff available at home improvement/hardware stores: cold patch asphalt, crack filler and sealer/coater. Asphalt driveways should have seal coat put on every two or three years. Crack filler is for those cracks that aren't too big. If the cracks are large, then even crack filler won't totally fill them. It does help, and is much better than doing nothing. Seal coating is not a complex job; its just a lot of hard work that should be done on a warm dry day.
If you have holes or really big cracks and don't want to repave, sometimes cold patch asphalt will last for a while. Getting any holes cleaned of dirt and mud and getting them dry is important for getting the cold patch to last for a while. Also, need to do a good job tamping that stuff down and letting it set up before driving on it. Seal the whole thing after you do cold patch repairs.
There are companies that will do a seal coat, with some crack filler/repair. Make sure you get a reputable one. As a minimum, somebody who has been in business in the same area for several years. This particular service is a prime market for fly by night operators who just "happen to have some leftover material from another job and will give you a great price" only to find out that they put used motor oil or other useless stuff on your driveway.