[Glossary](https://pecuvo.eu/en/glossary/) · Credit and debt # Over-indebtedness **In short:** over-indebtedness is a situation in which a person persistently cannot cover their instalments and bills from income without sacrificing basic needs or taking new loans. **Simply put:** early signs: paying only the card minimum month after month; instalments taking a large share of net income; borrowing to repay a loan; avoiding letters from lenders. Difficulties have many causes — illness, job loss, divorce — and are not a judgement of the person. **Example:** net income €1,500, instalments €900 — 60 % of income. After food, housing and bills nothing is left for savings, and every unexpected cost leads to a new loan. **Watch out:** the answer is not a new expensive loan. List all your debts, talk to lenders in writing and early, and seek free advice. **The EU rule:** from 20.11.2026, Directive (EU) 2023/2225 requires creditors to detect difficulties early and refer consumers to independent debt advice services available with only limited charges (Article 36). > **Example: Bulgaria** — Consumer Credit Act, Article 32a: lenders must have rules for borrowers in difficulty, including early indicators, and consider restructuring measures. > > **Check in your country** — Where is the official list of debt advice services? Start with *Your Europe* and the consumer protection authority. **Source:** Directive (EU) 2023/2225 — https://eur-lex.europa.eu/eli/dir/2023/2225/oj; Pecuvo Module 23. ## In depth in the modules - [Module 22](https://pecuvo.eu/en/modules/credit/) ## Related terms - [Debt](https://pecuvo.eu/en/glossary/debt/) - [Creditworthiness](https://pecuvo.eu/en/glossary/creditworthiness/) - [Payment holiday and restructuring](https://pecuvo.eu/en/glossary/payment-holiday/) - [Debt consolidation](https://pecuvo.eu/en/glossary/debt-consolidation/) - [Financial stress](https://pecuvo.eu/en/glossary/financial-stress/)