From a personal standpoint, borrowing money to pay other creditors is a bad idea. It only compounds the problem; you get further into the red. I know of someone who was earning in the six figures up to the end of 2007. She was in the habit of increasing the amount she owed to all of her revolving accounts as well as taking on personal loans.

She was able to handle all of the payments with ease.  Then, the bottom fell out! And, her income went down by more than half for 2008. Entering 2009, she saw her income fall further. And, she was unable to pay her creditors. So, she went to certain loan companies and secured more debt. Her belief was that things would surely get better. Things haven't improved for her in the business she's in; and there's no sign of improvement any time soon.

Like so many individuals, she was willing to make payments to creditors and not willing to put money away in sound investments. She borrowed her future income believing that the cash would continue to flow and all would be fine. Now, she understands how a little planning would have alleviated her present situation.

So, whether it's a person or a town government one must be willing to live within their means. It is difficult for many indivduals to understand the wisdom of financial planning. If someone needs to learn about financial planning ,there are professionals that will counsel them. Financial planners work on a fee basis. So, you can feel safe that they are not going to charge you based on how much money you have or how much you earn.

If you are having serious debt problems you should seek the advice of a qualified financial professional. There are attorneys that specialize in debt relief. You can also get help from legitimate companies that help you to manage your debt. Talk to the professionals. You may find that real hope is just a phone call away.