Pros and Cons of using Direct Debit to Pay your Bills

The use of debit cards has become the easiest and most dependable method of paying bills. The pros in favour of using debit cards far outweigh the cons against using them, yet both factors should be considered before you engage in using debit cards for paying your bills.

The Pros:

1) You can use your debit card to set up automatic bill payments for your monthly bills, and this means you don’t have to spend time working out all the payments any more because the bill collector does it for you.

2) When you pay your bills online, you can view your bank statement and know exactly what bills are paid and what monies are left in your account to work with.

3) You don’t have to make all those inconvenient trips to the bank any more to pay your bills.

4) You don’t have to fuss with writing out checks and then remembering to mail the payment off.

5) You save money on the purchase of checks as well on the cost of using them.

6) You don’t have to carry a lot of cash on you as you travel from one place to the next to pay your bills.

7) It cuts down on the use of paper and helps to save trees.

The Cons:

1) When you agree to automatic bill payments, you must have the available funds in your account on the set day for the payment. Since this is a computerized service, there is no grace for being late, which means the payment would go NSF and that will cost you the penalty that the bank charges for NSF checks.

2) Most online banking sites are secured, but there is always the possibility of a glitch in the system, which could allow hackers to get into your personal account.

3) When you are finished banking on line, you must remember to clear your browser, delete all the cookies and then close down your internet to allow all the temp files to be deleted. If you forget this step in the procedure, you could be leaving yourself and your bank account exposed on the web.

4) There is always the risk of illegal use of your card through the personnel or institution which you are paying funds to. Many stores and businesses have been guilty of swiping your card twice once for your bill and once for their own benefit without you realizing what they are doing.

5) It’s easier to lose track of your spending and miscalculate your funds when you’re using plastic, than it is when you are actually parting with cash.

So, when you consider the pros and cons of using the debit card to pay your bills, there’s no doubt that the convenience of them wins over the older ways. We just have to train ourselves to be disciplined in our spending when using the cards, and keep them safely tucked in our wallets when we’re not.