What are the cons of compound interest?

 In addition to providing benefits, compound interest also has a few disadvantages. Here’s a quick look at a couple of them. 

1. It is only advantageous over the long-term 

Compound interest works in your favour only when you give it a long period of time, say 10 or more years. It provides little to no advantage over the short-term. 

2. It can lead to significant financial burden 

Compound interest on borrowings or on debt can be very dangerous. When left unchecked, your debt can quickly spiral out of control, leaving you in financial ruin.