8 Oct 2009

Credit defaults fall among younger consumers

7:31 am on 8 October 2009

Fewer young consumers are defaulting on credit payments, as the recession has made them more cautious about taking on debt.

Credit information agency Veda Advantages says credit defaults among Generation Y consumers - those aged 28 and under - fell by 2.2% in the year to September.

This compares to a 7% rise amongst all consumers. Credit defaults among baby boomers, those aged between 44 and 62, rose by a fifth.

Many in the baby boomer age group have been affected by unemployment, says Veda Advantage managing director John Roberts.

However, signs of an economic recovery have encouraged those who have kept their jobs back into the property market, as mortgage applications up by 19% in the nine months to September.