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- Being financially overstretched means having borrowed or spent more money than you can pay123. It refers to a situation where an individual or corporation has more debt than they can handle and repay2. Consumers who use more than a third of their net income to repay debt are generally considered to be overextended2.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.having borrowed or spent more money than you can pay: Rising interest rates will impact seriously on overstretched consumers.dictionary.cambridge.org/dictionary/english/overstr…The term "overextension" refers to a situation in finance in which an individual or corporation has more debt than they can handle and repay. Consumers who must use more than a third of their net income to repay debt are generally considered to be overextended. They may need to consolidate their debts into a single loan.www.investopedia.com/terms/o/overextension.aspto spend or borrow more money than you can pay: overstretch yourself First-time homebuyers must take care not to overstretch themselves. Some lenders encourage people to overstretch.dictionary.cambridge.org/dictionary/english/overstr…
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