Over-indebtedness

Over-indebtedness is the situation in which a person or business takes on more credit than is financially responsible and can therefore no longer meet payment obligations. This can lead to a vicious circle in which existing debts are repaid with new loans or credit, often at a higher interest rate and on less favourable terms.

Over-indebtedness increases the risk of payment arrears, unpaid invoices, collection proceedings and a growing debt burden. Anyone who structurally takes on more obligations than their income allows may eventually face instalment arrangements, legal recovery and serious financial problems. That is why credit should be used responsibly and the total debt load kept under control.

The definitions in this section reflect the Belgian situation, unless otherwise stated. The texts summarise concepts in everyday language and should not be read as comprehensive or definitive. Suggestions or corrections may always be sent to glossary@tcm.be.

Updated: 10/08/2026