Only a fool takes a loan and pays it back, the point is when borrowing, especially for large loans, go bankrupt, get the money out somehow, use a good accountant and don't pay anything back. if you take a loan in order to pay it back, you are a loser because the interest is your work and the effort you give away. besides, banks print money out of thin air, so this money is free for everyone.
Money makes money so with this money you can set up the real honest business or to set up next business on other person name keep money flowing then build some credit history and take new loan.
That's the smart way and your time efforts getting paid and you make atleast something out of it.
In fact, this is not such a bad way, because if someone borrows money to pay off another debt, then this person buys himself time, and also maintains his integrity in front of another person or organization.
Therefore, I do not consider this method so bad. But only on one condition: that at this time this debtor is looking for money (earning it) to pay off all his debts, and not looking for someone who would lend him money, so that this debtor would continue to borrow and pay off money from debts.