The rate at which credit card loans have to be written off hasfallen sharply since 2010, according to Equifax, one of the three nationwide credit reportingbureaus.

Equifax's National Credit Trends Report announced that cardcharge offs currently stand at 5.53%, a full 39% lower than 2010levels while charge offs of card accounts offered by retailersstood at 8%, 26% lower than last year's.

Cumulative revolving card balances peaked in October 2008 atmore than $752 billion, and despite a recent uptick attributable toseasonal purchase activity, have since declined by almost 20%(December 2011 cumulative revolving card balances stand at $604billion), Equifax reported, adding that consumers total debt loadhad also dropped.

The consumer research firm reported that total consumer debtoutstanding (which includes first mortgage, home equity, consumerfinance, auto, student loan, retail credit card and bank creditcard) also peaked in October 2008 at $12.4 trillion.

In December 2011, U.S. consumers carried $11.1 trillion in totalconsumer debt, representing a decrease of more than 10%, Equifaxsaid.

“Declining write-offs, growing card originations and thestabilizing of card balances are a precursor to balance increases,which can help to return the banks to profitability in this lendingsector,” said Michael Koukounas, senior vice president of SpecialClient Services for Equifax.

“The industry is experiencing sustained improvement inconsumers' payment behavior and overall reduction of debt, a trendthat seems to indicate more responsible lending and borrowinghabits among card issuers and consumers alike,” Koukounas said.