Newbie at managing money?

Question

I have just turned 18 and havent had much experience managing money. i recently opend a bank account and recieved an atm card too.

My question is that i want to purchace mobile broadband (with dodo) soon, and there only payment options is 34.99 per month on a 24 month contract or 40.00 per month no contract.

They say that the fee will be debited from my bank account and i can only pay with bank account. no cash.

Anyway how does this all work? do i have to give them my bank details and they will automaticlaly deduct the payment at the end of th the month when ever they want or how much they want .

im scared im going to get scammed or something. i need help in knowledge about how debited banking things work!!

best answer 10pts immediatley.

Answer 1

You may want to go for one of the bigger mobile companies. The price will be higher most likely but you will have different payment options.

Some phone companies may required a credit card because they want to make sure they can get their money in case things go wrong or in order to verify you are who you say you are.

In any case, I suggest you AVOID at all cost any company trying to get into your checking account or debit card for automatic payments! I still avoid it and I have a lot more years than you.

Once you get established with the cellular company, you may pay using a debit card and even a checking account, just avoid the options of Autopay. The main reason is that we are human and we forget, and the day that autopay goes into your account and bounces, it will make everything else bounce and you will end up having to pay a tons of fees per bounce! Worst of all, they have the right to try again! imagine more bounce check fees!

So for now, until you have more experience, just do it the old fashion way.

Good Luck!

Answer 2

Yes, they can set up an automatic debit from your bank account, to occur every month until you call them to cancel.  They just need your account number (and possibly a bank routing number).  They probably don't trust you to pay by cash because you don't have much credit history, and it's a safer for them to just automatically debit your account.  Unless you run out of money - in which case you'll be feeling more financial pain.  If you're afraid of fraud, check out this:

http://www.ftc.gov/bcp/conline/pubs/tmar...

Answer 3

This is standard method of payment with most internet service providers. Dodo is a pretty reliable supplier, so I don't think you need to have any worries, but check out the rates for the other big suppliers before you sign up for one; you may be able to get a better deal. Don't forget, you will also have to pay for the router and the connection, so factor that into the overall cost.

Answer 4

i have mobile wireless internet with dodo.

the payment options are credit card or direct debit from your bank account.

for an institution to take direct debits from your bank account they need to firstly set up the infustrure with a bank.  As such scams usually are associated with credit cards rather than direct debit facility.  

If they direct debit people's account without their authorisation it gets traced back immediately back to them.

The reason y dodo has requested these payment methods is because u are paying in advance.

on a diff note DONT go with dodo theres BETTER pricing and service out there for internet.

Answer 5

doesnt sound right, no mobile company can force you to have to be taken out of your account, technically they ask for a credit card just to ensure that your a real customer.. then they send you a monthly bill.. which you pay at the bank, or you mail them a cheque...

thats how my mobile company did it for me.. 29.99/mo 3 year contract... i get a monthly bill, its not directly taken from my bank account