Compounding interest can result in people paying much more over the course of a loan, no matter what loan type it is. Although it is possible to pay compound interest loans back, it is more difficult due to the constantly accruing money, and some people, especially those with bad money management, remain in debt due to the interest.
Yes, compounding interest rates keep some people in debt forever, because in the end, the person pays more in interest than they ever paid for the thing in the first place. With interest rates, a credit card with only a modest balance can take years to pay off. Consumers don't get it.
Compounding interest rates do seem to keep some people in debt forever. My parent's who are now in their sixties, are a good example. It gives people breathing room and makes them a bit lax, and sometimes the interest goes up. It's a very viscious cycle to recover from, and most don't.
Compounded interest isn't what keeps people in debt. What keeps them in debt is a failure to maintain frugal habits and to pay the debt off as much as possible as often as possible. As long as someone keeps up these habits for the duration of their indebtedness, they will not have so much debt that it becomes unmanageable where an overwhelmingly large amount of the money being paid is for interest.
Compounding interest rates can keep a person in debt longer than they should be, but it shouldn't stop a person from paying off their debt. Most interest is compounding and plenty of people have paid off their debts. People should only take on what they can actually handle. Bad choices leave people in debt forever, not compounding interest.