Overcharge means you are not getting Full benefit to your armor (if you count each piece you will notice that they add up more than what it says you have). It means nothing other than that. You can either choose to use lighter armor pieces or ignore it.
for other overcharges, you might need to drop a little skill or not use a trait but for armor, its use less armor or ignore.
Note that if you die alot the overcharge can help since you will not have to run back to repair as often since you will still have full benefit of the armor until it is under the overcharge limit.
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There is no heavy armor skill. So there is no way to really fix it other than gain levels or drop some of your armor.
Ehm.. yes, there is heavy armour skill. But raising it has no effect on the overcharge. Only raising the level of your character will raise the soft cap, but a higher level also means you'll get better gear and thus higher armour values, which means you can overcharge it again.
At present, full heavy armour of appropriate level will almost always overcharge. It has been a cause for complaint during beta for quite some time. Hopefully something will be done to alleviate this issue.
Got it. So makes sense to wear some med armor just to raise skill.
It does. It depends on what you want to focus on with your character though.
If you want to be primarily a melee character and you use a lot of weapon skills, using some heavy and some medium armour is the way to go.
If you use mostly class skills and wear heavy armour to enhance your survivability, it's probably best to combine heavy with light armour.
The reason for this is because the skills associated with medium armour are for strengthening your weapon damage and stamina, whereas light armour gives many magicka related bonuses. Class skills count as magical, and the difference in armour values is not that great if you consider the soft cap for overcharging. A very popular setup during the beta was 5 light pieces + 2 heavy pieces. There is one skill-related bonus for each armour skill line that requires 5 equipped pieces for that bonus to take effect. If you simply like the idea of wearing mostly heavy armour and aren't that much of a min/maxer, I'd recommend 5 pieces of heavy + 2 pieces of light.
I wonder how current this is? As of release, I made a full set of level 8 armor for my now level 8 character. Without a shield (I'm using a two hander) I am ~50 armor points off from overcharge (which I easily reach after a single skill buff). So unless the Armor Overcharge values scales poorly with level, than it would appear that you could wear shield/full heavy set at level and be right around the armor overcharge value. Meaning all other enchantments ect. can go towards other values like spell resistance (if you are a tank) ect.
After thinking a bit I have decided that combining armor types allows you to adjust your style, so it was deigned by developers and seems that this is natural way of doing things here.
Currently at lev 7 I have 2 unspent skill points and trying to decide what is the best combination for my templar playing style (mostly solo, exploring world)
It means there is a soft cap on (almost) all stats. Once you reach that soft cap, it is "overcharged", and increasing that stat has a lesser effect than if it weren't overcharged.
There is no way to "fix" it. That's the design. The only thing you can do is to choose your gear so that you aren't wasting parts of it on overcharged stats. For example, instead of all heavy armor, swap out one or two pieces with light or medium armor for the passive benefits (like better mana or stamina regen, better spell resistance, or better crit chance).