You may be spending much more than you might think with your credit card, and without realizing it. Many consumers remain attached to old contracts, with high interest rates, signed at a time when the legislation was much more permissive. This situation is dragging families for growing debts, difficult to pay and virtually impossible to control according to Deco.
Legal limits only have existed since 2010
These old cards (prior to 2010) escape the legal limits that today regulate the interest charged. Currently, Banco de Portugal imposes a quarterly ceiling for TAEG (annual global charges rate), which in the second quarter of 2025 is set at 19.2%.
Previous contracts remain valid
However, for those who hired a credit card before January 1, 2010, this limit does not apply. This means that thousands of people continue to pay interest of 30% or more, without violating the legislation in force.
Installments hide true charges
The situation is worrying because many families do not realize the burdens they are supported. The monthly installment may seem acceptable, but the associated interest rate is corroding the long -term family budget.
An example with 31.9% interest
According to, and in the face of the study of Deco, the case of a customer with a rate of 31.9% revealed the severity of the situation. This person’s debt grows constantly, making it difficult to amortize them.
In addition, many of the paid monthly installments only serve to cover interest and commissions. The debt capital remains virtually intact, creating a difficult vicious cycle to break.
Changing card requires paying off the debt
Those who try to migrate to a better -condition card faces an important obstacle: it is necessary to pay all the debt associated with the old contract before moving to a new one.
Laws do not protect retroactively
Banco de Portugal explains that although there is a legal limit since 2010, it only applies to contracts entered into from that date. Previous contracts remain valid in the terms in which they were signed.
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Future rates do not apply to old contracts
Even in the cards contracted after 2010, the problem remains if the agreed rate is high. If the maximum Taeg goes down in the future, the old contract does not benefit from this descent automatically.
How is Maximum Taeg calculated?
According to Banco de Portugal, “the maximum Taeg is the average rate of the previous quarter, plus 25%”. Still, the contracted interest remains unchanged unless the client can renegotiate with the financial institution.
First steps to get out of this situation
Who is in this situation should act. The first step is to consult the credit card statement or contact the bank to find out the interest rate in force. If it is very high, there may be margin for negotiation.
Compare with other alternatives
Deco also advises comparing with other options available on the market. It may be advantageous to consolidate credits or choose cards with more affordable rates.
Beware of revolving credit
Another important tip is to avoid revolving credit, typical in credit cards, which prolongs debt indefinitely. Whenever possible, choose to pay all the monthly invoice.
Change can mean large savings
Small changes can translate into large savings. By reviewing your contracts and looking for fairer alternatives, you can avoid losses of hundreds of euros every year.
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