BABY BOOMERS CONTINUE TO DEFAULT ON CREDIT

MEDIA RELEASE

AUCKLAND, 7 October 2009 – The recession is continuing to hit the Baby-Boomer
generation hard with latest statistics from New Zealand’s largest credit bureau showing a significant 19.37 percent increase in defaults for those aged between 44 and 62 years of age.

Overall consumer defaults listed with Veda Advantage for the year to September 2009 are up 6.48 percent on the previous year with Baby Boomer defaults up 19.37 percent for the period.

In comparison, defaults for Gen X (aged 28-42) were up 3.55 percent while fewer Gen Ys are defaulting – the number of defaults for those under 28 years declined by 2.27 percent for the September 2009 year compared with the previous year.

Veda Advantage Managing Director John Roberts says “the statistics show the lifestyles of the Baby Boomers are coming home to roost – they are defaulting on debts mounted up over the years which they can now no longer service – the recession has seen many Baby Boomers lose their jobs while others have had their wealth eroded.”

However the company’s statistics also show that the Baby Boomer generation is back seeking mortgage money. Figures for the first nine months of the year to September 2009 show an 18.56 percent increase in mortgage applications from Baby Boomers compared with the previous year.

Overall mortgage applications are up 12.99 percent for the first nine months to
September 2009 compared with the previous year. This is the first increase in
applications for this nine month period since 2005.

ENDS

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