By YOUNG MONEY Staff
12 November 2010

Americans have been relying less on credit cards since the recession struck - and that trend looks poised to continue in the next few months.

Since January, credit-scoring website CreditKarma.com says, Americans with a credit card have been paying down their balances: Overall card debt fell 7 percent in the first 10 months of the year.

And, a recent survey shows, people plan to avoid taking on new debt when shopping for holiday gifts.

According to Morpace Market Research & Consulting, the proportion of consumers who don't plan to put any of their holiday purchases on credit cards is on the rise. Last year, 35 percent of people didn't anticipate using credit cards to shop for gifts; this year, 40 percent do.

People earning less than $50,000 are particularly likely to be card-averse: Fifty-three percent of that cohort expects to keep their cards in their wallets this holiday season, from 49 percent in 2009.

Avoiding credit cards may be a smart way to avoid a debt hangover in the new year. Setting a budget and sticking to it can also be a wise strategy.