Banks and consumer groups are calling on the government to make it financially feasible to forgive the credit card debt of some consumers.

Their request comes as defaults on credit card debt continue to rise as consumers face increasing financial pressures.

According to reports, as many as 50,000 consumers would benefit from a program of forgiveness if it was implemented.

Under the proposals, banks would write off up to 40 per cent of the debt owed by some of their most financially-impaired credit card customers.

Commenting on the calls, Susan Keating, president of the National Foundation for Credit Counseling, said: "There's obviously a financial benefit to the financial institutions to step up to the plate right now."

According to figures from the Federal Reserve, US consumers have accumulated $900 worth of credit card debt.

Meanwhile, a survey by First Command has revealed that people are paying off more of their short-term debt as well as increasing their savings.

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