Compound interest can help turbocharge your savings and investments, or it can quickly lead to an unruly balance, keeping you stuck in a cycle of debt. Its magic can help you earn more — or owe more.

Compound interest 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, ...

Compound interest grows your investment as earnings are reinvested to earn additional interest. Investing early in compound interest accounts like savings or CDs maximizes wealth over time.