When you make only the minimum payment on your credit card, you’re covering just a small portion of your total balance—often just the interest and a tiny fraction of the principal. This causes the remaining balance to carry over to the next billing cycle, where it continues to accrue interest. Credit card interest compounds daily in many cases, which means your debt can grow quickly even if you keep paying the minimum each month. Over time, you could end up paying significantly more than the original purchase cost. This is one of the leading causes of credit card debt spirals in the U.S. and can make it harder to improve your credit score. To maintain financial health and avoid mounting interest charges, aim to pay your full balance each month or as much above the minimum as you can afford.