Personal finance is a commodity that was produced by household under the budget and time constrained. Household use a financial literacy as human capital to appropriately allocate income and smooth consumption over the lifetime, well-being. Whereas, household who cannot appropriately allocated income, must borrow their future income to smooth their present consumption. If household always borrow, finally they will confront with a never-ending repayment their debt, the over-indebtedness cause household to face tough consumption and their well-being falls. This research aimed to answer what are the over-indebtedness household character and to prove a correlation between household financial literacy and over-indebtedness. The ground theory in this research are the life cycle hypothesis and the theory of the allocation of time. The study used a secondary data from The National Statistical Office. The financial literacy in this study includes: a financial knowledge, a financial behavior and a financial attitude. The research found that the financial knowledge only have a negative correlation with over-indebtedness