Mortgage and credit card delinquencies are expected to retreat gradually next year with lending standards becoming more conservative and lenders shedding bad debt, according to TransUnion LLC.

In some states that have been hit hard by the housing crisis, however, mortgage delinquencies will continue to increase, the credit information company said Tuesday.

The delinquency rate for credit card debt is expected to decline as consumers try to "keep incremental debt to a minimum and aggressively manage debt repayment," said Ezra Becker, the director of consulting and strategy at TransUnion's financial services group.

Credit-card accounts 90 days or more overdue are expected to decline next year, to 1.04%, from a projected 1.07% this year.

TransUnion said it expects the share of mortgages 60 or more days past due to decline to 6.39% in 2010 from a projected 6.56% for 2009.

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