New Zealand's largest credit reporting company Veda Advantage said recently that younger New Zealanders are increasingly cautious of taking on more debt.

The biggest drop was confirmed among those aged 15-28 by Veda, which took under consideration the credit applications, which include hire purchase, credit cards, personal loans and mortgages.

The youngest age group aka Generation Y, displayed the biggest fall at 40 per cent, while total hire purchase inquiries for May were down 27 per cent from the same month last year. Veda says that the group has initially displayed little reluctance in taking on debt.

Furthermore, credit card inquiries from "Gen-Y" also dropped enormously, down 26 per cent over the same period - more than the 22 per cent fall seen across all age groups. A fall by 40pct was seen their desire for personal loans, as compared to a 19.5 per cent fall from the others.

Veda Advantage's New Zealand managing director John Roberts said, "A year ago our research was showing that, while applications for personal loans and hire purchases had dropped, credit card applications had remained steady."

A slight hike in the total reported credit defaults for May was seen by 0.6 per cent compared to the same month last year. Though Gen-Y reported defaults were down 9.4 per cent, but those from baby boomers - those aged 45-63, were up 2 per cent.

(via TopNews New Zealand. Contributed by Girish Kumar Guha)