Information Guidance & Advice Flashcards
What are the 6 types of sources of financial advice?
1.
2.
3.
4.
5.
6.
- Citizens advice.
- Independent Financial Advisor.
- Price Comparison websites.
- Money Advice Service.
- Debt counsellors.
- Individual Voluntary Arrangement (bankruptcy).
How does an Individual Voluntary Arrangement (IVA) work?
It is a ___________________________ for a person to pay back the money they ________________________________.
legally binding agreement
owe to creditors at a fair rate
What are the 3 sources that are free to access?
1.
2.
3.
Citizens Advice.
Price comparison websites.
Money Advice Service.
What are the 3 sources that require a payment to access?
1.
2.
3.
IFAs.
Debt counsellors.
IVA (bankruptcy).
Which 3 sources can definitely be accessed face-to-face?
1.
2.
3.
Citizens Advice.
IFAs.
Debt counsellors.
Which 3 sources give advice on a range of financial situations?
1.
2.
3.
Citizens Advice.
IFAs.
Money Advice Service.
What is a disadvantage of price comparison websites, debt counsellors, and IVAs?
Only gives advice on specific topics.
Explain what is a disadvantage of Citizens Advice?
Since it is charity-run, the volunteers are not finance professionals, so advice may be limited or unreliable.
What is an advantage of price comparison websites?
24/7 access.
What is an advantage of the Money Advice Service?
It is government funded, so advice is free and impartial.
What is a disadvantage of the Money Advice Service?
Advice is more generic instead of personal.
What is an advantage of the Money Advice Service and debt counsellors?
It is legally regulated.
What is an advantage of IVAs?
Offers independent, unbiased advice through an insolvency practitioner.
What is a disadvantage of IVAs in particular?
Affects future credit ratings.
What can be an issue of any source of financial advice?
The advice may not be up-to-date.
