Banco de Portugal warns about expenses where the use of a credit card can turn a one-off charge into prolonged debt. The warning applies to both credit cards and mixed cards that combine debit and credit functions on Multibanco. The repayment method is crucial: full balance payment avoids interest, while partial payment generates charges on the unpaid amount. The maximum APR for new credit card contracts is 18.5% in the third and fourth quarter of 2026, according to the BdP table.
The article identifies nine situations where alternatives to card payment should be considered. These are: paying debts from another credit card, taxes that do not fit the budget, purchases from unreliable online stores, loan installments already difficult to meet, the deposit and initial costs of buying a home, tuition fees and education expenses without a payment plan, high-value health treatments without comparing financing options, regular expenses when the card compensates for lack of income, and cash withdrawals on credit (cash advance), which may include high fees and interest.
Regarding health treatments, the BdP warns that cards are usually more expensive than other credit options, with categories having an APR below 8.9% for health and education. For credit withdrawals, a commission of 4 euros plus 4% on a 20-euro withdrawal would cost 4.80 euros in commission alone, before interest and taxes.
Before using the card, the BdP recommends knowing the debt balance, the payment date, and expected charges, analyzing the APR and total amount charged to the consumer. Anyone already experiencing difficulties can use the Banking Customer Support Network free of charge for information, advice, and follow-up.
