B.4 Information, Guidance and Advice Flashcards
What are the information and guidance organisations?
- Citizens advice
- Independent financial advisor
- Price comparison websites
- Debt counsellors
- Individual voluntary arrangements
What is citizens advice?
Provides free, confidential and impartial advice through face-to-face, telephone, online and email services.
What are the advantages of citizens advice?
- Free service
- Easy access
- Wide range of area covered
What are the disadvantages of citizens advice?
- Trained volunteers are not necessarily professionals in financial issues and therefore knowledge may be limited
What is an independent financial advisor (IFA)?
Advise you on financial products they think meet your needs. Can spot areas in your personal finances where improvements can be made, and how you can make your finances more tax efficient.
What are the advantages of an independent financial advisor?
- Advice is offered by professionals in the field
- Services offered are regulated by the FCA and FOS
- Advisors will take time to understand an individual’s full financial situation
What are the disadvantages of an independent financial advisor?
- Services will be charged for
2. Advice offered is not guaranteed to be 100% up to date or unbiased
What is a price comparison website?
A vertical search engine that shoppers use to filter and compare products based on price, features, reviews and other criteria.
What are the advantages of a price comparison website?
- Easy to access
- Free service
- Money saving
- Wide variety and choice
What are the disadvantages of a price comparison website?
- Not guaranteed to be 100% up to date, accurate or unbiased
- Do not always cover all of the available options
- Potential for bias
What are debt counsellors?
A professional who offers independent advice on how best to manage debt.
What are the advantages of a debt counsellor?
- Advice is offered by a professional who specialises in debt management
- Services offered are regulated by the FCA and FOS
What are the disadvantages of a debt counsellor?
- Services will be charged for
2. Advice will focus just on debt management rather than the whole package of financial concerns
What is an individual voluntary arrangement?
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.
What are the advantages of an individual voluntary arrangement?
- Helps manage debt repayment with regular payments making budgeting easier
- Independent advice, without bias
