FF Challenge – Day 5: Stop Using Your Credit Card

Good morning guys! Before proceeding with Day 5 of the Financial Freedom Challenge I want to ask you a favor. I would like you to write me a comment with your opinion on the first 4 days of this challenge, how it is going and if you consider it useful or not. Would you add something to the daily step? I need feedbacks, so I can improve the next steps.

Once done this we’re ready to proceed with Day 5. Today’s step is dedicated to reducing our expenses by stop using our credit cards. Reduce the expenses is crucial to achieve Financial Freedom and we really have to focus very well on this step.

FF Challenge - Day 5: Stop Using Your Credit Card

What’s today’s task?

Theoretically, the today’s task is pretty easy. In practice, it can be very difficult. I’m talking about stop using your credit card or at least to limit its use to when it’s strictly necessary.

Actually in Italy it is not so common to have a credit card, but in some countries it is the norm. For example, in the USA the average is more than one credit card per person. Incredible!

Having a credit card can be very dangerous due to the ease of spending money that allows us to have. Spending money that we don’t have is never a good thing, especially if you spend it to buy things you don’t really need.

Moreover, having a credit card is even riskier for people with bad spending habits. For instance, people who use it to buy clothes they don’t need. Think about yourself: if using cash you realize you spend in a not too frugal way, with a credit card this tendency would be exalted.

Besides credit card is a financial instrument not so easy to understand. Many people that have a credit card don’t know exactly how it really works (hidden fees and so on).

So my advice to you is to stop using your credit card. If you really need it, make sure you fully understand how it works before using it for your daily expenses and limit its use.

A brief summary of today’s task of the Financial Freedom Challenge

  1. Think about how you’ve used your credit card in the past months
  2. Did you use it for important expenses or even for some futile ones?
  3. Starting from today limit its use to essential expenses only or even better stop using it

My experience

I ordered my first credit card last July because I needed it to rent a car in Denmark. That was the only use I made of it and now I intend to block it so I stop paying the 0,50 EUR fee per month.

Final recommendations

This was the fifth step of the Financial Freedom Challenge. If you have any questions about the challenge, write a comment and I’ll be glad to answer you 🙂

Also share in the comments your opinion about this step. Do you have a credit card? How do you use it? How is going your Financial Freedom Challenge?

Come back tomorrow for the sixth step and remember to follow us on Facebook and Instagram! Share this challenge on your social media: this will keep you motivated during the path, trust me 🙂 If you want a direct contact with me (answers, discussions, doubts, advice…) and the other participants, join our Telegram groups (ENG Group, ITA Group).

Finally, subscribe to the blog if you want to receive the next steps directly on your email:

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