This practice is more dangerous than the crisis itself. When an individual or an organisation reach a stage where they need to borrow money to clear out old debt, it only takes intervention to revive such company back to their feet otherwise, it is best to close it down as early as possible. Borrowing money is not ideally a good practice but it can not be entirely avoided at some point especially if you are to use the borrow money on a good course. However, it's a great financial mistake to start borrowing to settle old debt because it keeps you in debt circle. Advisably, irrespective of economy and inflation saga, one should do everything possible to avoid loans.