Can the term over-indebtedness apply to all credit?

Unfortunately No. The concept of over-indebtedness and reckless credit does not apply to everything. It does not apply to:

- Juristic Person;
- Pawn Transactions;
- Incidental Credit Agreement;
- School Loans; Public Interest Agreements;
- Emergency Loans;
- Temporary Increase in Credit Limit.

A consumer is over-indebted when an individual’s total household Net Income is less than that individual’s household expenses and debt obligations combined, furthermore, when he/she is unable to fully fulfill all his/her monthly obligations in a timely manner.

Make sure your credit provider knows all your expenses so that you do not end up being over-indebted or so that you do not become a victim of reckless lending.

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