Ofgreiðsla

Ofgreiðsla is an Icelandic term that generally translates to overspending or excessive expenditure. It refers to spending more money than is available or budgeted, leading to a deficit or debt. This can apply to individuals, households, businesses, or governments. In a personal finance context, ofgreiðsla means consuming beyond one's income or available resources. This can result in accumulating credit card debt, taking out loans that are difficult to repay, or depleting savings. For businesses, ofgreiðsla might occur when expenses consistently exceed revenues, potentially leading to insolvency. Government ofgreiðsla, often referred to as a budget deficit, happens when public spending surpasses tax revenue, necessitating borrowing or other fiscal measures. The consequences of persistent ofgreiðsla can be significant, including financial instability, stress, and a reduction in future economic capacity. Managing finances effectively and adhering to budgets are key strategies to avoid ofgreiðsla.