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People will add up to the credit card debt as the unemployment rate has increased by about 2 million people in the last 12 months.
The US Department of Labour reported that the US shed 1,59,000 jobs in September and the list of companies which have announced a cut in jobs read like a Who's Who of corporate America: Merck, Yahoo, General Electric, Xerox, Pratt & Whitney, Goldman Sachs, Whirlpool, Bank of America, Pepsi, Hewlett Packard, Alcoa, Coca-Cola, the three big Detroit auto manufacturers, leading newspapers, banks and financial institutions and nearly all the airlines.
To solve the ever increasing credit card defaults, banks and consumer groups are lobbying US regulators to forgive 40 per cent of the debt of most financially stressed consumers who are close to bankruptcy and they could pay off their remaining card debt, interest free in five years...
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