When do you pay intrest?

Interest is typically paid when you borrow money or use credit. This can occur in situations like loans, mortgages, or credit card balances, where the lender charges you a fee for the privilege of borrowing their money. Interest can also be earned on savings accounts or investments, where the bank or financial institution pays you for allowing them to use your funds. Payments are usually made on a set schedule, such as monthly or annually, depending on the terms of the agreement.