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

Answer 1

Advantages:
- avoiding late payment fees — Yes. Automatic payments help ensure bills are paid on time.
- not having to find a stamp and a mailbox — Yes. It’s more convenient than mailing checks.

Disadvantages:
- having to share your account information — Yes. You must give sensitive bank info to the biller/processor (security/privacy risk).
- not knowing when the payment will be taken out of your account — Yes. Timing can be unclear and make cash flow management harder.
- possible overdraft fees if there is not enough money in the account to cover the payment amount — Yes. Auto-withdrawals can trigger overdrafts.
- having to pay a fee for the service — Yes. Some companies or banks charge for autopay.

Not a recommended advantage:
- not having to keep track of the balance in a checking account — No. You still should monitor your balance; failing to do so can lead to overdrafts and other problems.