In the past four months fewer people have entered into IVA agreements with creditors as a result of an overall stabilisation in personal debt levels, according to PricewaterhouseCoopers (PwC).
The accountancy firm, which considers about 50 per cent of IVA proposals on behalf of lenders, stated that its records showed a month-by-month decrease in the number of people opting to take IVAs, reports the BBC.
“Our indications are that month-on-month IVA numbers have been falling gradually,” commented Pat Boyden, insolvency specialist at the company.
He added that despite the recent falling rates of IVAs, the numbers could soon pick up again in the future if the economy sees further changes, “mortgage rates are the thing to watch out for if they go up again”.
PwC also asserted that the declining figures in IVAs could be attributed to the fact that some banks and other lenders are becoming stricter when considering such deals.
Lloyds TSB recently stated that it experienced a slowdown in the growth rates in IVAs towards the end of 2006 and predicted that its bad debt charges will be dramatically lower in 2007.