Millennials riskiest for credit default

millenials

30 October 2015
| By Jassmyn |
image
image
expand image

Millennials are the most financially risky generation, with 18 per cent at risk of credit default in the next year, according to Veda.

The data analytics firm found Gen Xers who are credit active were the next riskiest of credit default at 13 per cent, followed by Baby Boomers at 6 per cent.

Veda spokesperson, Belinda Diprose, said Millennials were most at risk as they are more likely to seek credit in the future for "big ticket items", such as a home, car or significant household purchases.

Residents in Queensland and the Northern Territory were found to carry the highest proportion of residents at risk of default in the next year.

However, the data found that Gen Xers were the worst at paying bills on time (61 per cent), followed by Millennials (63 per cent), Baby Boomers (75 per cent), and the Silent generation (84 per cent).

Gen Xers also took the top rank with 18 per cent overspending to "live in the moment", followed by Millennials (16 per cent), Baby Boomers (17 per cent), and the Silent generation (0 per cent).

With the genders, 52 per cent of women were ambitious and focused on achieving their financial goals, compared to 47 per cent of men.

The survey also found 24 per cent of men said they overspend because they work hard and earn plenty, so deserve a good life, compared to 13 per cent of women.

Veda's survey found 66 per cent of people would check their credit score if they knew they could use it to get a better deal with lenders.

However, while 92 per cent of those surveyed were aware they have a credit record, 38 per cent did not know how to access it.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

9 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 14 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 12 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 15 hours ago