New Delhi, Sept. 12 -- A credit card with a Rs.3 lakh limit does not mean that the cardholder should recklessly spend Rs.3 lakh. Such a limit requires responsible management. If monthly usage is limited to Rs.50,000, the available credit can provide an individual with both a lower credit utilisation ratio and a meaningful financial cushion.

It is also essential to ensure that the higher credit card limit should never be mistaken for additional income. What every credit card user should acknowledge is that these are credit tools; they require sensible usage, and should not replace an individual's day-to-day spendings. The reason is that credit card debt is one of the most expensive forms of debt.

Keeping these basics in mind, let us disc...