For those struggling with too much credit card debt, help might be on the way.

An unlikely combination of banks and consumer groups are asking the government's permission to “forgive” as much as 40 percent of credit card debt for some borrowers.

It may sound odd that banks would want to forgive large amounts of credit card debt, but they figure it's better to make it easier for people to pay off their debt rather than risk them simply walking away from it.

It may help many consumers avoid bankruptcy.

Jackie Edmondson of Seattle was so deep in debt that she had to file for bankruptcy.

"It's mostly trying to erase some things that I did when I was young and stupid," Edmondson said.

She's not alone. Americans are carrying a staggering $900 billion in credit card debt and the lenders are having a hard time getting paid back.

The percentage they wrote off as losses grew to nearly seven percent in August, that's up 48 percent over a year ago.

Unlike home mortgages, the banks can't foreclose on credit cards and so they’re worried those in deep debt will simply walk away.

Along with consumer credit agencies, banks want the government to allow them to forgive up to 40 percent to as many as 50,000 people who are deep in debt.

The proposal drew a mixed reaction on Seattle's Queen Anne hill.

“I think it's a great idea if then they close their account, because the people will just do it again and again," Kris Malloy said.

Randall Bailey says it's just rewarding bad behavior.

"Spending it on toys or driving Lexuses around here that I can't afford and I certainly resent their being bailed out," Bailey said.

There are simple ways to lower your credit card costs right now:

Call your card's issuer and ask for a lower rate. If they resist, threaten to switch to another card.

Always pay more than the minimum amount to pay down the debt.

The credit crunch may soon show up in your credit card statement, in the form of lower credit limits and higher interest rates. The card issuers may give you a few weeks’ notice, but they do have the right to increase your interest costs.

Best advice read the fine print carefully.