New Delhi, Sept. 16 -- If you have a credit card, it is important to manage it efficiently. A credit card is, basically, a debt instrument. It is a payment card issued by a financial institution, allowing users to borrow funds to purchase goods or services. This borrowed sum is repaid later on either in full or over time with interest.

The goal of all credit card users should be to always clear their pending credit card bills in full. Paying the minimum amount due on your credit card statement should only be considered when finances are tight. Paying the minimum amount comes with complications such as the debt snowball effect, damage to credit scores if not paid in time, prolonged repayment period, possibility of penalties, and reduction...