Question

What are possible advantages and disadvantages of using automatic withdrawal to pay bills? Check all that apply.

Answer 1

Answer:  For advantages Option 'B' and 'D' are correct and

For disadvantages Options 'C' and 'F' are correct.

Step-by-step explanation:

Advantages of using automatic withdrawal to pay bills are

1) Avoiding late payment fees as automatically bill payment will be done on the crucial date.

2) Not having to find a stamp and a mailbox for depositing or paying the bill amount.

Disadvantages of using automatic withdrawal to pay bills are :

1) Having to share your account information. as it is required to perform the payment of bill and withdrawal of money.

2) Having to pay a fee for the service as the services charges is charged by the bank to perform the activity.

Hence,

For advantages Option 'B' and 'D' are correct and

For disadvantages Options 'C' and 'F' are correct.

Answer 2

Answer:

We need to remember what is automatic withdrawal...

Automatic withdrawal to pay bills, refers to automatic payments to services that are discounted from your credit cards. So, what advantages or disadvantages could be?

Advantages:

B. avoiding late payment fees: Setting automatic payments, will help you to pay in time, avoiding extra fees.

Disadvantages:

F. possible overdraft fees if there is not enough money in the account to cover the payment amount: automatic withdrawals could be a doubled-edged weapon, because if you don't have enough money, you could be facing higher costs, due to the overdraft fees.

G. having to pay a fee for the service: this automatic service tend to have a cost, which is not present if  you pay bills in person, or not automatically.