Providers of financial information and guidance

Question 1

evaluate Citizens Advice

Answer 1

charity run organisation that provides advice on a
range of financial and non financial issues. This can
be done via a face to face appointment, over the
phone or online.

covers areas including debt, benefits, banking and insurance

Question 2

give 2 advantages of Citizens Advice

Answer 2

Free

Covers a wide range of areas

Face to face, online & telephone

Question 3

give 2 disadvantages of Citizens Advice

Answer 3

Trained volunteers not professionals

Knowledge in finance may be
limited

Question 4

evaluate Independent Financial Advisor (IFA)

Answer 4

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

regulated by the UK government.

Question 5

give 2 advantages of Independent Financial Advisor (IFA)

Answer 5

Advice is offered by professionals ( high level of expertise )

Advice based on individual need and
circumstance

Question 6

give 2 disadvantages of Independent Financial Advisor (IFA)

Answer 6

Charge for services used

Advice not always 100% up-to-date or unbiased

Question 7

Evaluate Price Comparison Websites

Answer 7

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.

Question 8

give 2 advantages of Price Comparison Websites

Answer 8

Access 24/7

Free

Easy to compare

Question 9

give 2 disadvantages of Price Comparison Websites

Answer 9

Doesn’t cover all prices ( all providers )

Possible bias

Question 10

evaluate Debt Counsellors

Answer 10

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.

Question 11

give 2 advantages of Debt Counsellors

Answer 11

Professionals who specialise in debt

Regulated by the FCA and FOS

Question 12

give 2 disadvantages of Debt Counsellors

Answer 12

not free

just focuses on debt management

Question 13

evaluate Individual Voluntary Arrangements (IVAs)

Answer 13

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.

Question 14

give 2 advantages of Individual Voluntary Arrangements (IVAs)

Answer 14

Help manage debts via regular
payments

Unbiased as advice is independent

Question 15

give 2 disadvantages of Individual Voluntary Arrangements (IVAs)

Answer 15

fees are charged

bad impact on credit rating

Question 16

evaluate Bankruptcy

Answer 16

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.

Question 17

give 2 advantages of Bankruptcy

Answer 17

Your unsecured debts will be written off, giving you a fresh start

You won’t receive any further contact from your creditors.

Your creditors can’t take any further legal action against you to recover your debts.

Question 18

give 2 disadvantages of Bankruptcy

Answer 18

May get all assets repossessed

Stays on your credit report for 7 to 10
years

Difficult to borrow in the future