Older people more likely to use credit cards

Older people are more likely to be saddled with credit card debt than younger generations of Australians.

A study conducted by Veda showed that the number of people over the age of 65 defaulting on credit repayments has increased by 200 per cent in the past ten years.

At the same time, teenagers and Aussies in their 20s have been turning their noses up at credit cards.

The volume of card applications among 18 – 20-year-olds has fallen sharply in the past four years. It is probably no surprise that this coincided with the global economic downturn.

However, the research also stated that those Generation Y members who do take on credit are still the most likely to fall into arrears.

Head of consumer risk at Veda Angus Luffman said people need to realise that their credit rating can take a serious hit if they fail to make repayments each month.

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