For some people, borrowing their way out of
financial trouble seems like the best thing to do. They've had a temporary setback, and know they'll be back
on their feet soon. In these cases, borrowing may be the right thing to do, and there are local, regional and national
lenders who are ready, willing and able to lend. Contrary to the impression you may have from watching the news lately,
the biggest majority of them are honest organizations that treat their customers well.
However, for other folks this may not be a great
idea. Some folks are in situations where their credit is a real mess and they'll either not be able to get a loan, or
won't be able to get it as good of an interest rate as other folks. If the rate is too high, it can make the payments
so high as to make it hard to ever get "out of the hole" again.
Some people have had such big problems they are better off just throwing
in the towel and starting from scratch. If you owe money and have no way of paying it back any time soon, borrowing
more money will only delay things and make it hurt more in the end.
Other folks may have a house that is in pretty
poor condition (through no fault of their own) and they won't be able to find a lender to let them use the house as "security"
for the loan. Banks don't like lending money against houses that have leaking roofs, foundation problems, etc.
They'll usually want to see all the big problems fixed BEFORE they lend money. This can be a problem since you are wanting
to borrow the money because you don't have any in the first place!
(One more thought for you: Remember...it is almost
impossible for people to borrow their way to financial health.)