What is the primary trade-off when making minimum payments on a credit card?

The primary trade-off when making minimum payments on a credit card is that while you can avoid late fees by making these payments on time, you are still accumulating interest on the remaining balance. This means that although you may be managing to keep up with payments and avoid penalties, your overall debt continues to grow due to the interest charged on the unpaid amount. Over time, this can lead to an increased financial burden, as the balance can take significantly longer to pay off, resulting in a higher total cost due to interest accrual.

The other options do not accurately reflect the main consequence of making only minimum payments. Increased credit scores can happen with responsible credit usage, but they are not guaranteed just by making minimum payments. Immediate payoff of the total debt amount contradicts the very nature of making minimum payments, as it involves keeping the balance instead of paying it off entirely. Lastly, while making minimum payments may affect credit limits, it doesn't necessarily ensure an increase in limits, as credit limit decisions are multifaceted and depend on various factors, not merely on payment habits.