Debt also compounds like savings
Summary
- Just as savings compound, so does debt
Details
- It is possible to get into a debt spiral that can never be paid off
References
Quotes
In the same way that money compounds and grows by earning interest, debt can compound too, even to the point where it becomes essentially impossible to pay off. Many people who get into debt fail to realize just how powerful compounding can be over time. As Debt.org2 puts it, “Compound interest is a powerful tool for building wealth. It’s also a devastating tool that can destroy wealth. It just depends on which side of the financial equation you use it.”
Related
- Eliminate debt
- A simple life, Im beginning to understand, is not one that requires lots of money, but one that is not dictated by debt - Kate Humble
- Compounding is magic
- Compounding applies to knowledge, experience and relationships and not just money
- Small changes pay compound interest in the long run
- Good and evil both increase at compound interest - C.S. Lewis