Question

what are possible advantages and disadvantages of using automatic withdrawal to pay bills? check all that apply. not having to keep track of the balance in a checking account avoiding late payment fees having to share your account information not having to find a stamp and a mailbox not knowing when the payment will be taken out of your account possible overdraft fees if there is not enough money in the account to cover the payment amount having to pay a fee for the service

Explanation:

• Advantages:
• Avoiding late payment fees: Automatic withdrawal ensures payments are made on time, so late fees are avoided.
• Not having to find a stamp and a mailbox: Electronic/automatic payments eliminate the need for physical mailing, so no stamps or mailboxes are needed.
• Disadvantages:
• Having to share your account information: To set up automatic withdrawal, you must share your bank account details, which poses a security risk.
• Not knowing when the payment will be taken out: Some automatic payments may have variable or unclear withdrawal times, leading to uncertainty.
• Possible overdraft fees if there is not enough money: If the account balance is insufficient, automatic withdrawals can cause overdrafts and associated fees.
• Having to pay a fee for the service: Some institutions or payees may charge a fee for automatic withdrawal services.
• "Not having to keep track of the balance" is incorrect because you still need to track your balance to avoid overdrafts.

Answer:

Advantages:

• B. avoiding late payment fees
• D. not having to find a stamp and a mailbox

Disadvantages:

• C. having to share your account information
• E. not knowing when the payment will be taken out of your account
• F. possible overdraft fees if there is not enough money in the account to cover the payment amount
• G. having to pay a fee for the service