Consumer Advice

Question 1

2 advantages of citizens advice
(Run by charities)

Answer 1

Free
Impartial advice

Question 2

2 disadvantages of citizens advice
(Run by charities)

Answer 2

Advisers aren’t financial professionals which means they may not be able to deal with complex financial problems
May have long waiting times to see an adviser

Question 3

2 advantages of Independent financial advisers (IFAs)

Answer 3

Offer advice on a range of financial services
Do not receive commission on financial products they recommend

Question 4

1 disadvantage of Independent financial advisers

Answer 4

IFAs charge for their services

Question 5

3 advantages of price comparison websites

Answer 5

Free
Access 24/7
Allows consumers to choose the product best suited to their needs and budget

Question 6

2 disadvantages of price comparison websites

Answer 6

Requires a computer with online access
Not all suppliers may be identified

Question 7

2 advantages of The Money Advice Service
(Government Agency)

Answer 7

Free and impartial advice
Advice and guidance on a range of financial services

Question 8

2 disadvantages of The Money Advice Service
(Government Agency)

Answer 8

Requires a computer with online access
Consumers may not feel confident using the tools

Question 9

2 advantages of debt counsellors

Answer 9

Authorised by the FCA
Personalised advice on budgeting and dealing with creditors

Question 10

1 disadvantage of debt counsellors

Answer 10

Private debt counsellors may charge a fee for their services

Question 11

How does Individual Voluntary Arrangements (IVAs) work ?
(Way to avoid bankruptcy)

Answer 11

IVA is an agreement with your creditors to pay all or part of your debts
Agreed to make regular payment of a pre-agreed amount to an insolvency partner
Insolvency partner shares this out amongst all of the individual’s creditors