What is a significant risk of overspending on credit cards?

Overspending on credit cards inherently leads to accumulating large amounts of debt, which is a significant risk associated with improper credit card use. When individuals spend beyond their means, they may find themselves unable to make minimum payments, resulting in late fees, increased interest rates, and potential damage to their credit profiles. This cycle can escalate quickly, leading to financial distress and making it difficult to regain control over one's finances.

In contrast, building a positive credit history, improving one’s credit score, or gaining rewards points usually requires responsible credit management, where expenditures are kept within manageable limits and payments are made on time. These outcomes are generally seen as benefits of responsible credit use, rather than risks associated with overspending. Thus, recognizing the danger of accruing debt underscores the importance of prudent financial practices when utilizing credit cards.