What is over-indebtedness and how to manage the situation?

Your unpaid bills accumulate and your income is no longer sufficient to cover your monthly credits and daily expenses, or even your most basic expenses such as rent, electricity and gas. You feel that your situation is getting worse. You are then in a situation of overindebtedness.

Over-indebtedness can have objective causes that occur independently of the person, such as dismissal, divorce, widowhood, economic crisis or disabling illness, or subjective causes related to the individual’s attitudes, such as poor budget management, unnecessary expenses, addiction to gambling or addiction to drugs.

But especially a tendency to borrow to repay each time the existing loans

But especially a tendency to borrow to repay each time the existing loans

There are solutions against over-indebtedness, the important thing is to react quickly at the first signs of difficulty.
First, try to reduce your expenses and keep only the essentials, while looking for ways to increase your income, and if you have some valuables, sell them to pay off your debts.
If, despite everything, you are financially impassive, and your debts accumulate, then you must contact the banking organizations and the credit institutions with which you have contracted a credit, explain their situation to you and try to find a land of To change the time and the amount of your payments according to your budget.
Also check with your advisor the insurance contract for each of your loans, there may be a guarantee that covers your situation (illness, disability or incapacity for work). Above all, avoid settling your temporary situations by contracting new credits, you will worsen your situation and lock yourself in an infinite spiral.
If your approach to the banking organizations do not succeed, contact the social service of your town hall, in order to meet a counselor in social and family economy (CESF), the latter will take care to support you morally, and to help you administratively, he will also help you manage your budget the best way to lower your expenses.
Also remember to contact the family allowance funds (CAF), they can help you financially by giving you interest-free loans repayable in small installments, in addition to the non-refundable social assistance that you can benefit from.
Also contact the social service of your general counselor, who can allocate useful financial aids. Then go to the departmental association of family associations (UDAF), they are able to help you in your efforts and can provide valuable advice such as renegotiation of loans, the Walter Mitty credits or payment schedule.

If all these measures prove to be insufficient or impossible to practice, then file a file with the commission of overindebtedness of your department


It’s an approach that protects you and helps you find solutions with your creditors. This commission verifies the validity of the conditions of over-indebtedness and decides the procedure to follow to get out of the impasse.

Depending on the severity of the case, a judge will decide on a recovery plan, referral procedure or personal recovery procedure

Finally, to avoid falling into the trap of over-indebtedness, the best solution is to anticipate, ensuring all the credits that you contract, avoiding at all costs to delay the payment of your bills and your debts, and especially by trying save a little money to deal with the unexpected while being reasonable in your expenses.