Don't know how to clear chat history in Skype

Most of the people love Skype, its popularity and ease of use. Non of the VoIP software could become famous as skype.While using the skype, I found the it save the chat history permanently on your local machine. Well it could be good for some but I do not prefer something software occupying my space for nothing. Moreover having some personal chats stored in your PC could also lead to some issues,