Information Guidance + Advice

Question 1

Citizens Advice

Answer 1

An organisation, run by charities, that offers advice on financial and non-financial issues at physical centres as well as online and via email and telephones. Financial advice covers areas including, debt, benefits, banking, pensions and insurance

+ Free service
+ Wide range of areas covered

• Trained volunteers are not necessarily professionals in financial issues so knowledge is limited

Question 2

Independent Financial Advisor (IFA)

Answer 2

IFAs are professionals who offer independent advice to their clients on financial matters including savings, investments, mortgages and pensions

+ Advice is offered by professionals in the field
+ Services offered are regulated by the FCA and FOS

• Services will be charged for
• Service offered is not guaranteed to be completely up to date or unbiased

Question 3

Price Comparison Websites

Answer 3

These websites collate prices for similar goods and services within an industry allowing consumers to make comparisons easily and find the best deals

+ Easy to access 24/7
+ Free service

• Not guaranteed to be completely accurate or unbiased
• Do not always cover all of the available options

Question 4

Money Advice Service

Answer 4

This is a government organisation set up to offer free and impartial financial advice in the UK

+ Government-funded so advice is free and impartial
+ Covers a wide range of financial matters

• Advice is only available online or over the phone
• Advice can be generic rather than personal

Question 5

Debt Counsellors

Answer 5

A professional who offers independent advice on how best to manage debt

+ Advice is offered by a professional who specialises in debt management
+ Services offered are regulated by the FCA and FOS

• Services will be charged for
• Advice will focus on just debt management rather than the whole package of financial concerns

Question 6

Individual Voluntary Arrangements (IVAs) Bankruptcy

Answer 6

This is a 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

Regular payments are made to the insolvency practitioner who then spreads this across the creditors deciding how much to pay each one

+ Helps manage debt repayments with regular payments making budgeting easier
+ Independent advice without bias
+ Keep your house and other assets

• Set up and handling fees are charged for the service
• Will affect future credit ratings