Question

You decide to sign up for autopay using a debit card. Using this option, the company will automatically charge your debit card $50 per month for your cell phone plan.

Which of these is a risk to consider when setting up automatic payments for your bills?
Question 3 options:

Automatic payment may cost a hidden fee added to bill balances


You could overdraw your account if you forget about an upcoming payment.


It won't be possible for you to track this charge every month.


Automatic payments can negatively affect your credit score.

Answer 1

You could overdraw your account if you forget about an upcoming payment.

Reason: an automatic withdrawal for $50 will still post even if your balance is low, which can trigger overdraft fees—so keep track of balances or set alerts.