Sources Of Advice And Guidance Flashcards
What are citizens advice bureau (CAB)?
Run by charities to offer advice on A range of financial and non financial issues
What are independent financial advisors (IFA’s) ?
IFA’s are professionals who offer independent advice on financial matters eg savings , investments
What are price comparison websites ?
They collate prices for similar goods and services within an industry to help consumers get the best deals
What are money advice services (money helper)?
A government organisation set up to offer free and impartial financial advice in the uk
What are debt counsellors ?
They are professionals who offer independent advice on how best to manage debt
What are independent voluntary arrangements (IVAs)?
An individual voluntary agreement is a legally binding agreement between you and your creditors that helps you to pay off your debts at an affordable rate
What is bankruptcy ?
Bankruptcy involves a legal proceeding for someone who is unable to pay their debts , it has some serious consequences
What are advantages of citizen advice bureau (CAB) ?
-offer advice online , over the phone , and in person so is convenient
-particularly helpful for low income citizens and a useful first point of call
-free service
-gives impartial advice
-wide range of areas are covered
Disadvantages of citizens advice bureau (CAB) ?
-Not professionals so advice may not be the right advice as knowledge may be limited
-restricted opening times
What are advantages of independent financial advisors (IFAs) ?
-have a high level of expertise so able to help support complex financial needs
-offer customised guidance based on your entire financial picture
-they do not receive commission for any of the financial products that they recommend
What are disadvantages of independent financial advisors (IFAs) ?
-higher fees as their services are charged for
-advice offered is not 100% guaranteed to be up to date or unbiased
What are advantages of price comparison websites ?
-easy to compare prices of different providers
-convenient and time efficient
-easy to access 24/7
-free service
What are disadvantages of price comparison websites ?
-not all insurers use price comparison websites
-not always up to date
-hidden fees once you go to get the insurance and finalise the purchase
-requires a computer with internet access
What are advantages of money advice services (money helper ) ?
-offer expert guidance when making important and difficult financial decisions
-keep individuals on track to reach their goals
-government funded so advice is free and impartial
What are disadvantages of money advice services (money helper ) ?
- due to being a government led service , the pension advice tends to revolve around state pensions not private ones
-information on offer is designed to be simple so miss subtleties out
-advice available online so no physical appearance
-advice is generic
-requires a computer with internet access
