Debt Review Terms Explained:
Making Industry Terms Easy To Understand
If you use credit then you have debt. You owe someone money. You are indebted to them.
Each month you have to pay the people you have credit with an instalment (a payment). These companies and banks are called ‘credit providers‘ because they provide you with credit.
If you cannot pay all your credit providers (the banks etc) what they are asking for each month and still manage to pay for all the things you need to get by each month (like rent, food, insurance, medical costs, telephone bills etc) then you have too much debt.
You now not only have debt but have become over-indebted.
DID YOU KNOW?
Even though a Debt Counsellor can do the math and see that you are in financial trouble only a court can legally declare that you are actually over-indebted.