Gen Yers most at risk from credit strife

New figures show that while Australians are generally becoming more credit-savvy, gen Yers are at greatest risk of default.

More Australians appear to be getting their act together on financial matters, but gen Yers remain at greatest risk of defaulting on their loans over the next 12 months.

Credit data provider Veda's annual "Credit Scorecard" found that 1.9 million, or 12 per cent, of people are at risk of financial strife over the next year.

It compares with 2.3 million, or 15 per cent, two years ago.

However, 19 per cent of gen Yers or millennials are at risk of default in the next year, compared with 13 per cent of gen Xers and just six per cent of baby boomers.

A default in someone's credit history can be prompted by something as simple as an unpaid bill, credit card or loan.

Veda spokeswoman Belinda Diprose says it is concerning that millennials are most at risk since they are the most likely to seek credit in the future for big-ticket items such as a home, a car or significant household purchases.

Queenslanders and Northern Territorians are viewed as the most at risk of default, and ACT residents the least in figures released on Thursday.


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Source: AAP


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