WASHINGTON - President Barack Obama warns in a televised address to the nation on Monday evening that defaulting on U.S. debt obligations would be "a reckless and irresponsible outcome" to the stalemate in Washington. He calls for a "fair compromise" and says a temporary extension of the debt ceiling would not solve the problem.

"If we stay on the current path, our growing debt could cost us jobs and do serious damage to the economy," Obama said in a televised speech to the nation.

He said "both parties have responsibilities to solve the problem," however, there are still two approaches.

The United States already reached its borrowing limit of 14.29 trillion US dollars on May 16, and would default if there is no agreement on lifting the limit by August 2, according to the Treasury Department.

With only a week left before the deadline arrives, Democrats and Republicans remain divided on the approach to solve the problem, risking worldwide repercussions.

Republican leader and House Speaker John Beohner on Monday unveiled a new plan which will take a two-stage deficit reduction plan that would start with an initial 1.2 trillion dollars in savings over 10 years. It is expected to be rejected by Obama because it would raise the US debt limit for only a few months, meaning the issue likely would have to be revisited early next year.

Meanwhile, Senate Majority (Democrat) leader Harry Reid detailed their competing plan for 2.7 trillion in deficit reduction over the next decade but with a debt limit increase that would carry through the November 2012 presidential and congressional elections. Republicans appear unlikely to support this approach.

White House Spokesman Jay Carney said in a statement that Reid's proposal was a "reasonable approach that should receive the support of both parties."

Obama said failure to compromise and let the country to default on its financial obligation is "reckless and irresponsible."

"We must avoid default," the president said.