When you are unable to pay off your outstanding debts at the end of the month, or get close to that point.
Being over-indebted is a problem a lot of people face. It means you are unable to pay off all your debts at the end of the month. If you find yourself paying off multiple debt accounts and are battling to find the money to pay back all your debt, you have probably taken on too much debt and should consider re-evaluating your financial situation.
Your next step may be to approach a debt counselor who will assist you in consolidating your debts.