The Bank of England's decision to drop the base rate by .25 per cent is set to lower the number of people needing to apply for an IVA.
Many consumers struggling with mortgage repayments can now expect to pay significantly less each mont, leaving them free to spend the money on other expenses and debts.
Many lenders quickly reacted to the news by lowering their rates, with Nationwide being the first in with a drop to 6.99 per cent on their Base mortgage figure.
The news will come as welcome relief to many families who were contemplating a difficult start to the new year after the expense of Christmas.