I had a discussion with family members about how taking a loan to pay another loan with the same interest is basically wasting money and they didn't agree.
To make things clearer, say loan 1 is 100 000 $ \\\$ $ with a fixed monthly rent of 10 % in a 10 months (to make the numbers nicer). When loan 1 has 50 000 $ \\\$ $ left you decide to take a loan 2 to pay of the remainder of loan 1 before the ten months are completed. Now here is where the disagreement starts. I say that you have to pay the 50 000 $ \\\$ $ plus an interest of the remaining 50 000 $ \\\$ $ (I assume it's 10 %, but in a real case scenario it might be different) and then on loan 2 you would have to continue with a 10 % interest on loan on the 50 000 $ \\\$ $. In the end you would thus lose money by taking a second loan. So my question is then: Is my assumption of having to pay interest on the remaining 50 000 $ \\\$ $ in loan 1 incorrect or correct?