What is a disadvantage of making only minimum monthly payments on a credit card?

Making only minimum monthly payments on a credit card primarily leads to higher overall debt. When individuals only pay the minimum, a significant portion of their payment goes toward interest rather than reducing the principal balance. This results in a slow reduction of the debt, and the remaining balance accrues more interest over time. Consequently, it can take a considerable amount of time to pay off the debt fully, leading to an increase in the total amount paid in interest and potentially growing the debt if additional purchases are made on the card.

By not addressing the principal, the accruing interest can compound, increasing the debt over time, particularly if the card carries a high interest rate. Making only minimum payments can thus create a prolonged cycle of debt that may be difficult to escape. This financial strategy does not effectively contribute to debt reduction and can lead to prolonged financial strain.