Helping build the lenders’ capacity in this regard will be the Central Credit Register, now in preparation at the Central Bank (though this is an inherently slow-burning project which is not due to go live until early 2016). Financial literacy? I need hardly remark that this is not to ignore the role of the borrower!
Over-indebtedness is usually attributed to either bad decisions or to bad luck. As far as decisions are concerned, it is clear that most people do not behave as rationally and logically in relation to financial decisions as the elementary textbooks of finance say they should.