Question

Which is a good reason to use an Automated Cleaning House (ACH) to pay a regularly occurring bill such as a monthly utility bill or student loan payment?

A. ACH payments are more expensive than manual payments.
B. ACH payments provide better rewards or cashback compared to other payment methods.
C. ACH payments allow you to easily track your expenses and budgeting.
D. Having the payment made automatically means the payment is less likely to be missed.

Answer 1

Using an ACH for regularly occurring bills ensures payments are not missed and allows for easy expense tracking and budgeting.

Step-by-step explanation:

A good reason to use an Automated Clearing House (ACH) to pay a regularly occurring bill such as a monthly utility bill or student loan payment is that having the payment made automatically means the payment is less likely to be missed. ACH payments eliminate the need for manual payments, such as writing a check or using a debit card, which can be forgotten or delayed. By setting up automatic payments through ACH, you can ensure that your bills are paid on time without the risk of forgetting or facing late fees.

Additionally, ACH payments allow you to easily track your expenses and budgeting. Since ACH payments are typically recorded in your bank statement, you can review your payment history and analyze your spending patterns more efficiently.