B4 Information and Guidance Flashcards
What is citizens advice ?
It is an organisation run by charities that offer advice on a wide range of issues both financial and non financial
Advice is offered at physical centres as well as online and by email and telephone
Financial advice covers areas including debt, benefits , banking , pensions and insurance
What are Independent financial advisors ?
They are Professionals wh offer independent advice to their clients on financial matters including savings , investments, mortgages and pensions
What are Price comparison websites ?
They collobrate prices for similar goods and services within an industry allowing consumers to make comparisons easily and find the best deals
Give 2 areas of expertise where Citizens advice might provide personal finance guidance to members of the public ?
Benefits
Tax
Outline 2 advantages to the consumer of using a price comparison website ?
Easy to acess and is available 24/7
Saves money and only have to put details once
Discuss the advantages and disadvantages to the consumer of using Citizens advice as a source of financial advice ?
Advantages
- free to use
- Located in most major towns
- face to face as well as online
- wide range of financial advice can be provided
- not linked to any financial instiution
Disadvantages
- May not be specialiss in field
- knowledge may be limitied
- Advice may be incorrect
- Limitied hours of operation
- advice given is general guidance not legal advice
Discuss the advantages and disadvantages ot the consumer of using price comparison websites ?
Advantages
- quick / easy to acess
- can be acessed anywhere with internet connection
- saves money by finding the cheapest option
Disadvantages
- Not all retailers will be shown
- product might be unavailable / discontinued
- Information could be outdated
- Could be biased if companies are able to pay to have their products given pritority
What is the money advice service ?
This is a government organsiation set up to offer free and impartial financial advice in the UK
What are debt consellors ?
This is a professional who offers independent advice on how best to manage debt
Discuss the advantages and disadvantages of an individual using debt conselling to help mamange her personal debts ?
Advantages
- Debt counselleors can inform debt collectors on the clients behalf which can give up to 30 days breathing space
- Debt counsellors can create a debt management plan
- can be a free service
Disadvantages
- The replayement plans will take longer to repay than the debts up to seven years
- You cannot get credit while you are undertaking debt counselling
- could lose time at work and therefore further earnings
What is the individual voluntary arrangments bankruptucy ?
It is a government organisation that allows an individual to declare themselves bankrupt while agreeing to pay all or part of the money they owe to creditors through an insolvency practitioner
Regular payements rae made to the insolvency practitioner who then spreads this across the creditors deciding how much to pay each one
