We all have one thing in common, we all have expenses. The difference comes in the way we pay our bills. Our payment methods generally revolve around the access to our money and the fees that we pay to gain access.
There are three major ways that you can pay your accounts:
- Debit Order
- EFT Payment
- In Cash
Number One Paying Via A Debit Order
A debit order is an arrangement whereby you give a third party permission to regularly withdraw money from your account, for instance a vehicle loan. This amount may vary each month and the debit order lasts as long as there is a contract between you and the company debiting your account.
The major advantage of using a this service is that a debit order offers you an easy way to manage your money and provide assurance that bill will automatically be paid, even if you are on holiday or when you simply forget to make the payment.
Number Two EFT Payment
An EFT is an electronic funds transfer that allows you to transfer money from one account to either a single financial institution or across multiple institutions, through a computer based system. This means that you can pay your bills while playing a game of solitaire or in the advertising break of your favourite television show.
The major advantages of this system are that there is no delay and no paperwork, as you are able to track your payments online. All you need to do is log on to your internet banking and send the money across.
Number Three In Cash
The other option is to pay your bills in cash. This is the slowest and most tedious approach to payments. The reason for this is you have to visit the company premises, possibly stand in a queue, and wait for a receipt. This receipt is your proof of payment and is necessary when compiling your annual tax declaration.
The only real advantage of paying for items in cash is that it you do not incur transaction or debit order fees for the payment. However, the cost of petrol and the time spent waiting in line will cancel out that transaction or debit order fee.
In conclusion, these are the three payment methods that are available for your usage. Some people stick to only one, while others use a variety of different methods to suit your needs. Ensure that you find the most suitable method to fit your lifestyle.