What might be a consequence of compounding interest on credit card debt?

Compounding interest on credit card debt can significantly increase the total amount owed because interest is calculated not only on the principal balance but also on the interest that accumulates over time. This means that if you carry a balance on your credit card and only make minimum payments, the total debt can grow rapidly due to interest charges being added to your outstanding balance.

As a result, the longer the debt remains unpaid, the more you will owe, as the interest continues to compound and accumulate additional charges. This makes it crucial to pay off credit card balances as quickly as possible to minimize the effects of compounding interest, which can lead to a financial burden that escalates over time.