From the course: Tips for Overcoming Bad Spending Habits
Join today to access over 23,300 courses taught by industry experts.
Impacts of debt
From the course: Tips for Overcoming Bad Spending Habits
Impacts of debt
One of the challenges about debt is that debt is compounding. So what does that mean? So let's say you buy something for $1,000, and now you are going to be making payments on that. However, it's not just the thousand dollars that is accruing the interest. You've got the thousand dollars plus the interest that you didn't pay. That's layered on there. So now it starts compounding. So if you look at -- you bought something for a thousand and you took your time paying for it, you may have paid $3,000 or greater for that thousand-dollar item based on the compounding. So compounding interest works in your favor as a saver. You're getting paid on. You put money in the bank and the bank's paying you interest. It's just the reverse in debt. In debt with compounding, not simple interest. And it's going to get too involved but simple interest would cost you a lot less money. Compounding interest, the mountain gets bigger, the snowball gets bigger, and then it gets so large you're like, oh, my…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Kurse herunterladen und unterwegs lernen
Sehen Sie sich die Kurse auf Ihrem mobilen Gerät an, ohne eine Internetverbindung zu benötigen. Laden Sie Kurse mit Ihrer iOS- oder Android-App LinkedIn Learning herunter.