B4 Information, Guidance And Advise Flashcards
What is citizens advice?
A charity that offers advice on a range of financial and non-financial matters.
What is an advantage of Citizens Advice?
Free service
Wide range of services
Accessible to all
Independent and impartial
What do Citizens advice offer? (Two examples)
Pensions
banking
borrowing
food banks
debt solutions
budgeting
mortgage problems
What is a disadvantage of Citizens Advice?
Trained volunteers that are not professional financial advisors
Customers may be referred on and make take time to access support
What is IFA?
Independent Financial Advisors
What are the Independent Financial Advisors?
Professionals that are registered to offer financial advice
What advice do the IFA offer?
Saving
Mortgages
Investments
Pensions
Insurance
Why must an IFA be registered with the FCA?
To stop the customer from losing out on money if an IFA can make mistakes or possibly be shady about your money.
What is an advantage of an IFA?
Advice provided by a professional
Services regulated by the FCA
They take time to understand the full financial situation
They can always be checked on the FCA website
What is a disadvantage of an IFA?
IFA’s charge for their services
Not all advisors offer the same services
What are Price Comparisons Sites?
Websites collected together produce information and price on a range of products and services.
What is an advantage of a Price Comparison Site?
Easy to access 24/7 as it is internet based
Confident to quickly compare product/services
Free service
What is a disadvantage of Price Comparison Sites?
Not all products are listed on price comparison sites
Information may not be up to date
Options may be presented on bias
No advice offered for individual circumstance
What is a Money Advice service?
Government financed organisation set up to offer free and impartial advice for financial services
What is an advantage of a Money Advice service?
Government funded - advise for free
Accessibility - on websites
Offers a range of services
What is a disadvantage of Money Advice Services?
No physical presence
A lot of information in one website
Advice is generic rather then personal
What is Debt Counselling?
Professional services offered to advice a client on better debt management
What is an advantage of Debt Counselling?
Advice is offered by specialists in debt management
Service is regulated by the FCA
What is a disadvantage of Debt Counselling?
Fees charged
Advice will focus on debt management not on the whole financial circumstance
May lead to solutions e.g. bankruptcy that impact on a persons credit rating
What does IVA stand for?
Independent Voluntary Arrangements
What is an IVA?
A formal agreement between customer and creditor that agrees monthly repayments plan over a period of time
What is an advantage of an IVA?
Insolvency practitioners offer advise to manage debts in a way the customer can manage
A persons debt repayment is transferred into one repayment plan instead of multiple
This can be a solution to a serious debt problem
What is a disadvantage of an IVA?
They are an agreement set through the court- it must be honoured by the customer by agreeing to the repayments
They impact credit rating making it difficult to access future debt
What is bankruptcy?
A form of insolvency that writes off debts if you can’t afford to pay them giving a person a fresh start
What is an advantage of bankruptcy?
What is a disadvantage of bankruptcy?
