Compound interest is created when interest that is added to the principal of a deposit or loan also earns interest. Over a period of time, compounding can greatly magnify the amount of debt owed or savings accumulated. An understanding of this principle will help investors and consumers appreciate the importance of saving and the need to avoid debt.
This is actually one of the easiest financial decisions you could ever make.
Simply don't do it.
If you already have debts that compound, then refinance them so that you're paying simple interest. Gaining the advantage of simple interest does require you to make full payments on time. Penalties accrue otherwise.