Understanding the way compound interest works is key to building wealth or avoiding crushing debt. Here's how to make it work for you

The more frequentlyinterestcompounds, the faster an overall amount of money accumulates.
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Compound interest occurs when previously earned interest is added to the principal amount invested or borrowed. It is commonly described as "interest earned on interest."
Compound interest can work to your advantage as your investments grow over time, but against you if you're paying off debt, like credit cards.  
If you're borrowing money, you want interest compounded as infrequ