Information guidance and advice Flashcards
Citizens advice
A charity run organisation that provides advice on a range of financial and non financial issues. Can be done via a face to face appointment over the phone or online. Financial advice covers areas including debt, benefits, banking, pensions and insurance.
Citizens advice pros and cons
Pro’s - free, covers a wide range of areas, offers face to face.
Con’s - trained volunteers not professionals so knowledge in finance may be limited.
Independent Financial Advisor(IFA)
Professional individuals who provide independent advice and guidance on a range of financial products such as mortgage, pensions, insurance and investing.
Independent financial advisor pros and cons
Pro’s - advice offered by professionals, services are regulated by the FCA and FOS, advice based on individual needs and circumstances, no commission.
Con’s - charge fees, advice may not be 100% up to date or unbiased, dependant on quality of advisor.
Price comparison website
These websites collate prices for similar goods and services within an industry allowing consumers to make comparison easily and find the best deals.
Price comparison website pros and cons
Pro’s - easy to access 24/7, free service, easy to compare to make comparisons easily and find the best deals
Con’s - could be inaccurate or bias, does not always cover all providers.
Debts counsellors
A professional service that offers independent advice on how to manage debt. Helps people through education, budgeting and use of a variety of tools to reduce debt.
Debt counsellors pros and cons
Pro’s - professionals who specialise in debt, regulated by the FCA and FOS
Con’s - services are charged for, only focuses on debt rather than whole package of financial concerns.
Individual Voluntary agreements
A government organisation that allows a individual to declare themselves bankrupt, while agreeing to pay all or part of the money they owe to creditors through an insolvency practiser.
Individual voluntary agreements pros and cons
Pro’s - helps manage debt by regular payments, advice is unbiased.
Con’s - set up and handling fees are charged, will affect future credit ratings
Bankruptcy
A legal process through which people or other entities cannot repay debts to creditors may seek relief from some or all of their debts. Bankruptcy is often imposed by a court.
Bankruptcy pros and cons
Pro’s - suspends any debt collection, debts are usually written off
Con’s - may get all assets repossessed, stays on credit report for 7 to 10 years, difficult to borrow in the future.
