- Overexpansion refers to a situation in which an individual or entity has more debt than they can handle and repay.
- Over-rolling also represents excessive leverage on a trader’s or investor’s account and their purchasing power in relation to securities.
- Consumers and businesses tend to be overwhelmed if they use at least one-third of their income to pay off debt.
- Consumers can consolidate their debts while companies can raise capital to avoid overstretching.
- Giving more credit to those who are over-prolonged can be risky for lenders.