(B4) Information Advice and Guidance Flashcards
What is citizen’s advice?
A charitable organisation would provides free and impartial advice on financial and non-financial issues
What is the advantage of citizens advice?
It’s helpful to low-income citizens or those who lack knowledge of finance
What are the disadvantage of citizens advice?
- Advisors are not professionals and may be unable to deal with complex financial issues
- Advice is generic
What is an Independent Financial Advisor (IFA)?
Professionals who provide advice on a wide range of financial service e.g. mortgage
What is the advantage of a independent financial advisor?
They do not receive commission from any financial products they recommend as well not being tied to one financial provider
What is the disadvantage of a independent financial advisor?
IFAs charge for their service
What are debt counsellors?
An individual or an organisation who help individuals struggling with debts
What are the advantages of debt counsellors?
- Personalised advice on budgeting and dealing with creditors
- Can help with IVAs or bankruptcy
- Authorised by the FCA
What is the disadvantage of debt counsellors?
Some debt counsellors charge for their services
What is the Money Advice Service?
A government agency that provides free and impartial advice to help an individual with their finance
What is bankruptcy?
When an individual declares themselves unable to pay their debts
What is the disadvantage of bankruptcy?
Consequences are severe and long lasting
What is a Individual Voluntary Arrangement (IVA)?
An agreement where a individual declares themselves bankrupt and agree with creditors to make a repayment
