Question

Many consumers use checking accounts and credit, often in the form of credit cards.

• What are some of the advantages and disadvantages of having a checking account?
• What are some of the advantages and disadvantages of having a credit card?
• What are some strategies you could use to manage credit cards to avoid paying high-interest rates and fees?
• How can planning to manage your accounts lead you to be more productive and better equipped to reflect on your financial priorities?

Answer 1

Answer:

i) A checking accounts is utilized to make each individual everyday cash transfers simpler.

ii)

Advantages of checking account :

• Utilizing a checking accounts, we can pay our electricity bills, gas charges, pay for goods and to do on the web and offline shopping.
• In a checking account, we can boundless number of exchanges/transactions. For this, the bank will never charge the account holders.
• We can get to our cash whenever.
• A checking accounts benefits the people in number of instruments to get to the cash, for example, debit cards, ATM, check books and overdrafts use.

Disadvantages of checking account :

• In a checking account, the bank offers a nil or least sum if rate of interest.
• Bank will charge when we are not keeping up a minimum balance.
• The account might be charged when he is utilizing the ATM of different banks.

iii)

Advantages of credit cards :

• Debit cards makes online shopping a lot simpler.
• Online payment is doable with credit cards.
• Simple to check all exchange and credit card any time on the web.
• Utilizing credit cards, one can refill fuel and no necessary to carry money.
• Booking of vehicle, inn or plane is simple with credit cards.
• Credit cards is safe and simple to carry than carrying money in pocket.

Disadvantages if credit cards :

• In credit cards, there is a restriction of use can can't be utilized more than that limit.
• There might be some shrouded/hidden costs while utilizing creditcards for payments.
• Credit card frauds are normal in these current days.
• Interest rates are higher for utilizing credit cards.

iv)

A few strategies you could use to oversee Creditcards to abstain from paying high interest rate and fees are :

• Continuously pay the month to month balance.
• Setting up auto payments. This can protect us from missing any payments.
• Maintaining a list of our auto payments.
• Analysing our spending in real time. This can be useful to recognize any slip-ups or fraud attempts.
• Continuously utilize our credit cards for all that it can. This can expand our credit ratings quicker.
• On the off chance that we get hit up by a finance charge essentially, at that point we should call the credit card organization not long after the day.
• Report our lost or stolen card right away. Reporting quickly can block our cards and can prevent theft activities.

v)

Financial accounting records and sum up over every exchange and transaction details. We can get to budget report, for example, account or income statements. Speculators, money lenders or partners can take decisions utilizing these fiscal statements. Hence it can give a general analysis in account related securities. It will likewise give creditors to effectively get to the liquidity of cash. It additionally give financial specialists how to allocate resources which are not in great quantity.