Financial Advise

Question 1

Independent Financial Advisor (IFA) Desc 3A 2D

Answer 1

Desc
Professional individuals who provide independent advice and guidance on a range of financial products such as; mortgages, pensions, insurance and investing.

They must be qualified and are regulated by the UK government.

A
Advice is offered by professionals

Regulated

Advice based on individual need and circumstance

No commission

D
Charge fees

Dependant on the quality of the advisor

Question 2

Price Comparison Websites Desc 3A 2D

Answer 2

Desc
Price comparison sites do exactly what their name implies as they compare the price of goods and services from a range of companies.

This allows you to make sure you get a deal that’s tailored to you at the best price.

A
Access 24/7

Free

Easy to compare

D
Could be bias

Does not always cover all providers

Question 3

Debt Counsellors Desc 2A 2D

Answer 3

Desc
Debt counselling 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 a variety of tools with the goal to reduce and ultimately eliminate debt.

A
Professionals who specialise in debt

Regulated by the FCA and FOS

D
It isn’t free

Just focuses on debt

Question 4

Individual Voluntary Arrangements (IVAs) Desc 2A 2D

Answer 4

Desc
An Individual Voluntary Arrangement (IVA) is an agreement with your creditors to pay all or part of your debts.

You agree to make regular payments to an insolvency practitioner, who will divide this money between your creditors.

An IVA can give you more control of your assets than bankruptcy.

A
Help manage debts via regular payments

Unbiased as advice is independent

D
Fees are charged for the service

Impact on credit rating

Question 5

Bankruptcy Desc 2A 3D

Answer 5

Desc
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions bankruptcy is imposed by a court order.

A
Suspends any debt collection

Debts are usually fully written off

D
May get all assets repossessed

Stays on your credit report for 7 to 10 years

Difficult to borrow in the future