What is a common disadvantage of using credit cards?

High-interest rates are a common disadvantage of using credit cards. When balances are not paid off in full each month, customers can accumulate significant interest charges on their unpaid balances. This compounding effect means that purchases can end up costing much more over time than their initial price. High-interest rates make it easy for consumers to fall into debt, especially if they rely on credit cards for everyday expenses and do not prioritize timely repayments.

This concern is particularly vital for individuals who may find it challenging to manage their finances, as they might be tempted to carry a balance, leading to growing debt and financial stress. Understanding the implications of high-interest rates can help individuals make more informed decisions about credit card use and consider alternatives for managing their finances effectively.