New Delhi, April 16 -- The aspect of personal finance that most people find most important is understanding how to manage payments on credit cards. While it may feel easy to pay the minimum amount due every month, it is important to understand the effects of doing so. This article covers the concept of minimum payments, their effects on your finances, and provides some practical tips on managing credit cards.

A minimum payment is the least amount you can pay by the due date on a credit card and continue to keep your account in good standing. Minimum payments are usually calculated as a percentage of total outstanding debt, usually 5% or more.

In conclusion, it may seem adequate to simply keep the minimum due amount on the credit card, i...