What is the true statement regarding borrowing money to get out of debt?

The statement that you cannot borrow your way out of debt is founded on the principle of financial independence and responsible money management. When an individual is already in debt and attempts to borrow more money to settle existing obligations, they often fall into a cycle of increased debt. This strategy does not address the underlying problem of financial mismanagement and can lead to even more serious financial issues, such as higher interest rates, accumulating fees, and damaged credit scores.

Borrowing more does not eliminate existing debt; it simply creates new obligations that can add to financial strain. Instead, the focus should be on creating a realistic budget, reducing expenses, and implementing a debt repayment plan that prioritizes eliminating existing debts without taking on additional burdens. This approach aligns with sound financial principles that advocate for budgeting, saving, and living within one’s means rather than cycling through loans that only perpetuate the debt situation.