Which factor is likely to hinder financial growth?

High-interest debt is particularly detrimental to financial growth because it creates a significant financial burden that can hinder one's ability to save and invest. When an individual carries debt with a high interest rate, a substantial portion of their income is directed toward servicing that debt, typically through monthly payments that include both interest and principal. This reduces the amount of money available for savings or investment opportunities, limiting the potential for wealth accumulation.

Moreover, high-interest debt often compounds, meaning that if not managed properly, the total amount owed can grow quickly, further exacerbating financial strain. Individuals may find it challenging to escape this cycle, as the interest can surpass any potential gains one might earn through saving or investing, effectively negating any efforts toward financial growth.

In contrast, regular savings and investments in stocks are generally strategies that promote financial well-being. Compound interest works to the advantage of savers and investors, as it enables their wealth to grow over time through the accumulation of interest on both the initial principal and the interest that has been earned. These approaches contribute positively to an individual's financial health and pave the way for future financial independence.