Re: How do credit cards work?
No, you don't pay interest until 25 days after the end of the billing cycle. So for a purchase on July 1, you don't pay interest until August 25.
Credit cards are a really good deal if you pay your balance in full every month. You are essentially getting an interest free loan for everything you buy. For purchases at the beginning of a billing cycle, you have nearly 2 months until you have to pay off that purchase. Also, CC's give you much more protection against fraud than debit cards. There is 0 reason to use a debit card for purchases.
Your goal should be to keep as many of your assets invested or interest bearing accounts for as long as possible. There are many banks that offer savings accounts with over 5% interest. And there's no need to worry about getting the money out because banks are statutorily required to give you 6 free withdrawals every month.
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