finance andinfomation guidance providers.

Question 1

citizens advice

Answer 1

what is it? - a charity run organisation that provides advice on a rage of financial and non-financial issues.

• can be done on the phone, online and via telephone
• covers areas such as debt, benefits banking pension and insurance.

advantages
- covers a wide range of areas
-it is free
-face to face, online via telephone

disadvantages
- trainees voluntarists professionals
-knowledge on finance may be limited.

Question 2

IFA- independent financial advisor

Answer 2

what is it?- professional individuals who provide independent advice and guidance on a range of financial products such as -mortgages, pensions, insurance and investing.

advantages
-advice is offered by professionals regulated
-advice is based on individual need and circumstances
-no commission

disadvantages
-charge fee
-dependant on the quality of advice given by the independent financial advisor.

Question 3

IVA - individual voluntary arrangement

Answer 3

-is an agreement with creditors to pay all or part of your debt.

you agree to make regular payment to an insolvency practitioner - who will divide this money between your creditors.

An IVA can give you more control of our assets than bankruptcy

advantages
-help manage debts via regular payments
- unbiased advice is independent

disadvantages
- fees are charged for the services
- impact on credit rating.

Question 4

debt councillor

Answer 4

• is a professional service that offers independent advice. It is a common process that is used to help individuals with debt settlement through education, budgeting and the use of variety of tools with the goal to reduce and ultimately eliminate debt.

advantages
- professionals who specialise indebt
- regulated by the FCA and FOS

disadvantages
- it is free
- just focuses on debt

Question 5

bankruptcy

Answer 5

is a legal process through which peole or other entities who cannot repay debts to creditors may seek relief fromsome or all their debts.
-imposed by a court order

advantages
- suspends any debt collections
- debts are usually fully written off.

disadvantages
=may get all assets repossessed
-stays on your credit report for 7 to10 years
-difficult to borrow in the future.

Question 6

price caparison website

Answer 6

price comparison sites do exactly what their name implies as they compare the price of goods and services from a range of
companies
-allows you to make sure you get a deal that is tailored to give the best price.

advantages
-access 24/7
-free
-easy to compare -gives the best price

disadvantages

• could be bias
• does not always cover all providers.