Consumers are expected to cut credit card debt in 2011

Many Americans are looking to avoid added credit card debt this holiday season, choosing instead to use cash, checks and debit for purchases.

While this mentality has been highly documented this holiday season, one research agency says it is likely to continue into 2011.

In its annual report, TransUnion, is predicting consumers will continue to make timely credit card payments, cutting delinquencies by more than 10 percent. If the 2011 numbers hold true, Americans would reduce their late payment rate to 0.67 percent.

“Seasonality aside, the percentage of bank card borrowers delinquent on one or more bank-issued, general-purpose credit cards is expected to continue to decline generally through 2011, reaching levels not seen in more than a decade,” said Ezra Becker, vice president of research and consulting at TransUnion.

Becker cited provisions by the recent Credit Card Accountability Responsibility and Disclosure Act of 2009 and a shift in how consumers are using credit cards as the reason for the lofty expectations.

In addition, the report predicts the delinquency rate will drop in all 50 states next year.