Credit information provider Veda Advantage said that Boomer credit defaults increased 20 per cent in September, as compared to the corresponding period last year. However, total defaults are up by less than 7 per cent. The Veda Advantage survey indicates demand for credit among the general population.

Veda Managing Director John Roberts said: "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."

Credit defaults rose 19.4 per cent in the age group between 44 and 62, while defaults in the case of 28-42 age groups rose 3.6 per cent. Meanwhile, defaults declined 2.3 per cent for the under-28 category, in the reporting period.

Roberts said that there has been a 12.99 per cent increase in overall mortgage applications during the first nine months of this year. He added, "On top of this September 2009 shows the largest number of mortgage applications for the month of September since 2005."