New Delhi, Oct. 13 -- Having Rs.2 lakh in credit card dues and a Rs.5 lakh personal loan can put pressure on an individual's monthly budget. However, when deciding which debt to clear first, the outstanding amount alone should not determine your repayment strategy, as applicable interest rate, repayment terms and their influence on your credit score and overall credit profile also matter.

In most cases, clearing high-interest credit card-related dues first can go a long way in helping reduce the overall borrowing burden, provided you also continue to clear your pending personal loan EMIs on time.

The focus of borrowers, therefore, should be on avoiding delays or defaults in such situations to prevent financial complications, psychologic...