7 easy steps to pay off debt

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Business Week | By Hitha Prabhakar, U.S. News & World Report

The road to a debt-free life doesn’t have to be long – or painful.

Let's be honest. Did you overspend in 2013? If the answer is "yes" you are not alone. American consumer debt rose 1.1 percent to $11.28 trillion in the third quarter of 2013, according to the Federal Reserve Bank of New York. That's the highest increase in household debt in more than five years!

There is never a quick-fix solution to getting out of debt. But dealing with debt doesn't have to be painful. Here are seven steps to consider when making your debt payoff plan:

1. Create a debt payoff strategy. If one of your financial goals for the year is to get a better handle on debt, put together a debt payoff strategy that complements your budget and won't overextend you financially. It's also a good idea to create a master list of all your recent holiday-related expenditures that were paid for with a credit card or a personal loan. Knowing what your total debt load is will make it much easier to create a realistic payoff strategy. And reward yourself when you hit certain milestones to keep the momentum going!

2. Pay off the most expensive debt first. Look at the interest rates of all of the credit cards you use to make purchases and sort them from highest to lowest. By paying off the balance with the highest interest first, you increase your payment on the credit card with the highest annual percentage rate while continuing to make the minimum payment on the rest of your credit cards.

3. Lower your interest rate. You can often lower your credit card interest rates by doing a balance transfer. This means moving your credit card to another bank that might lower the interest rate to get your business. Shop around and try to get the lowest interest rate for the longest duration (preferably until the debt is paid off completely). Just make sure you fight the temptation to use that new card, and commit to paying off the balance you moved over in a timely manner.

4. Use annual budget data to plan against pitfalls. Several personal finance tools allow you to see the sum of your spending for the year, which can be your greatest asset in pinpointing the areas where little changes will result in major financial progress in 2014. For example, by vowing to reduce spending in your highest-spent category by a mere 10 percent in 2014, you could put more toward emergency savings, retirement and your credit card debt.

5. Stop creating new debt. As you start to pay down your debt, stop using credit cards on a regular basis. Even if you earn cash back or other rewards with credit card purchases, stop spending with your credit cards until you have your finances under control. It's probably a good idea to leave the cards at home when you're out shopping so you aren't tempted!

6. Allocate your holiday bonus. If you received a holiday or New Year's bonus, put that money toward your debt payoff plan. Avoid the temptation to spend that bonus on a vacation or other luxury purchases at the beginning of the new year, so you can focus on improving your financial health instead.

7. Pay more than the minimum. Break the habit of paying only the minimum required each month on your credit card statement. Paying the minimum – usually 2 to 3 percent of the outstanding balance – only prolongs a debt payoff strategy. Strengthen your commitment to pay everything off by making weekly, instead of monthly, payments. If your minimum payment is $100, double that to $200 or more. Early and/or multiple payments mean reduced interest expenses and a quicker pay down, which will help you get back on a positive financial track.

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10 steps to reducing your credit card debt

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Business Week | By Bill Hardekopf, MainStreet

Do you owe more money on your credit cards than you have in your emergency savings? You're not alone -- and the situation isn't hopeless.

Credit card debt is a huge weight on Americans’ finances. According to a recent survey, close to half have more credit card debt than emergency savings.

Issuers have added to the problem. Mailboxes have been filled with credit card offers as issuers aggressively market lucrative rewards and balance transfer cards, especially to consumers with good or excellent credit scores.

Consumers need to stop running up large account balances and getting themselves in a financial pinch, like they were in 2008. Here are 10 tips for reducing credit card debt starting now:

1. Know how much you owe for all credit cards debts. Write down a debt summary that includes the creditor, monthly payment, interest, balance due, credit limit and due date for each loan.

2. Contact your creditors to see if you can negotiate a lower interest rate. The less money you pay in interest, the more money you can use to pay off your credit card balance as well as other bills.

3. Pay off the card with the highest APR first. Continue to pay the minimum on your other cards until you pay off the card with the highest rate. Then focus your effort on the card with the next highest rate. After you pay off the card, keep it open, especially your oldest cards. Losing this available credit can lower your debt utilization ratio, which could, in turn, lower your credit score.

4. Pay more than your minimum payment. Your minimum payment is usually only 2 percent to 5 percent of your balance. At this rate, it will take you many years to pay off your debt. Start with the card with the highest interest rate and try to at least double your minimum payment

5. Balance transfer offers are currently very attractive, so consider transferring your balance to a card with a lower rate. If your rate is above 12 percent, look for a card that offers 0 percent for at least 12 months. To take full advantage of this 0 percent interest, pay as much as you can above the minimum payment each month.

6. If you have a credit card balance, stop using that card for anything other than emergencies. Use cash instead. If you carry a balance, you are paying interest for every purchase, including clothing, entertainment or dinner. Factor that in to each purchase. Paying with cash will not only save money on interest, but will also reduce the amount you spend.

7. Pay your bills on time, every time. Not only do you have to pay a late fee, but late payments can also appear on credit reports. Negative information such as this can result in lower credit scores and higher interest payments.

8. Give yourself a realistic timetable to pay off this debt. It took time to accumulate this credit card debt, and it will probably take even more time to pay it off.

9. If you are surprised by your current rates, check your credit report. It may contain an error that lowered your credit score, causing creditors to increase your rates. If you find an error on your report, contact the credit bureau to report it. They must respond to your claim in thirty days or remove the information that is incorrect or unverifiable. You can dispute by mail, telephone or online. If the corrected error results in a higher credit score, alert your creditors to this and ask for a lower interest rate.

10. If you are in danger of missing a payment, or defaulting on your credit card loan, contact your credit card issuer as soon as possible. Your issuer may work out a payment plan with a lower rate or monthly payment if it will help keep your account out of default.

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Create a personal budget in 8 steps

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| By Sienna Kossman, U.S. News & World Report

Designing a budget you can stick to doesn’t have to be a painful process.

Just like dieting, budgeting is often associated with deprivation and cutting back. However, creating and maintaining a budget doesn't have to be a painful process. "If you ... start thinking about [budgeting] as a way to concisely create a better environment for yourself using your resources, it will get that much easier," says Leslie Beck, a certified financial planner at Compass Wealth Management LLC in Maplewood, N.J.

Aside from maintaining a positive mindset, here are eight guidelines to help you successfully build and manage a budget:

1. Keep it simple. While a budget can be a great tool for managing finances, it can quickly become overwhelming if it's overly detailed or idealistic. "There are things that you will likely sacrifice when budgeting, but it's very important to be realistic and understand your own habits," says Kristin Wong, a contributor to the financial blog Get Rich Slowly. "If I have a problem area within my budget, like eating out or shopping, instead of trying to focus on everything and being too hard on myself, I pick that one area. The hardest part of a budget is sticking to it, so the easier you can make it, the better."

2. Set a time period. Establish your budget for a time period that's long enough for you to see results. Stephen Lovell, a certified financial planner with Lovell Wealth Legacy in Walnut Creek, Calif., suggests budgeting for one year at a time. Budgeting month-to-month can accommodate everyday living expenses and bills, but a yearly budget can help you also plan for larger and more infrequent expenses, like income taxes or holiday presents. "You don't want things to slip away," Lovell says. "It's better to be approximately right than precisely wrong."

3. Build an emergency fund into your budget. An emergency fund should be an essential component of every budget. It can help you finance unexpected expenses like medical bills so you don't have to pull income from other areas. "For example, allocate just as much to your savings as your emergency fund," Wong says. "Once you have that, it's a lot easier to maintain the budget if a big expense springs up."

4. Don't worry about finding the perfect record keeping method. Just as there are many ways to create a budget, there are also many ways to keep track of it. Whether it's through an online budgeting program like Mint or Quicken or on paper, stick to whatever works best for you. "Make sure you approach it in a manner that you are comfortable with," Beck says.

5. Make sure everyone involved is on the same page. Whether your budget affects your spouse, partner or roommate, communication about the established financial plan is crucial. "If you have two people who have really disjointed approaches to money, that's really going to be a problem in the long run," Lovell says. "You need to be aware of the other person's attitudes about money and realize that your own aren't universal. Everyone needs to be on the same page and after the same goals for the budget to be successful."

Being open with those around you about your budget can also help you create a support system while you work to get your finances on track. "Talking to friends really helped me," Wong says. "For example, even talking about it helped me when I was shopping with my mom. If I hadn't told her that I was on a strict budget, I probably would have spent more. She was there to hold me accountable."

6. Make adjustments along the way. If over time, your budget results don't match your expectations or financial needs, you may assume the plan is wrong. However, it's likely that you simply uncovered unknown problem areas. "The things that pop up will actually let you know what the real norm is, so pay attention to what it is telling you," Lovell says. "If you think, for instance, that you spend 12 percent of the family income on discretionary items, and you find after tracking for two months it's more like 28 percent, then something is off there."

7. Try adding on instead of only cutting back. Following a budget typically means making cuts in less essential areas or eliminating some costs completely. However, if reducing the amount of money going out isn't doing enough, look for ways to increase the money coming in. "Take a part-time job or sell something that is just sitting in your closet taking up space," Beck says. "People tend to think about just the one side of the equation when working to keep their budget on track, but there's another side that you can influence too, whether it's for a temporary or permanent basis."

8. Don't set yourself up for failure. Making sacrifices is part of managing expenses, but if you set restrictions too high and too soon, you will be less likely to follow your budget over the long term. "If you enjoy a latte every day, don't go from zero to 60 in terms of cutting back. Do it gradually," Wong says. "Nobody wants to stick to a budget that cuts out everything fun in their life. If you keep failing at your budget, you are going to be discouraged and you're not going to want to do it anymore."

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6 key retirement planning steps

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| By Philip Moeller, U.S. News & World Report

The earlier you take proactive steps, the greater your odds will be of having a successful retirement.

Coming to terms with the realities of your later years can be one of the toughest challenges of aging. America is obsessed with youth, and even acknowledging the inevitability of aging may be considered a form of cultural disloyalty.

So let's accept and applaud that 80 can be the new 60, that millions of baby boomers will reinvent themselves during their 60s and 70s and that stereotypes about being old in America will be tossed out in favor of more positive images of vibrant old age.

Even so, we will still get old. After all, isn't that the goal of today's enhanced emphasis on taking better care of ourselves? To age successfully, however, we will also need to contemplate important aspects of our later years, up to and including plans for our death.

Here are six planning needs that nearly everyone will face as they age and retire. Some are practical and financial; others are subjective but no less important. In every case, the sooner you begin to build these plans, the better off you'll be in the future. How many of these life "boxes" have you checked off?

Generating the largest possible retirement income often seems to be the only financial goal of retirement planning. But it's really just a visible element of a more complex set of calculations, many of which are emotional, not financial.

The goal of all this work is to produce self-sufficiency in retirement. We don't want to worry about making ends meet every month, and we certainly don't want to be a burden on our families. Reaching self-sufficiency is a process that should begin well before you turn 65. It can often require some difficult and perhaps uncomfortable admissions about how much money you will have to live on in retirement.

While we're balancing future expenses and income, we're also adjusting our dreams to reflect the reality of our likely future circumstances. It is hard work, but ignoring it doesn't make it easier or lead to better outcomes.

Unless you're really wealthy, there are adverse life events that can devastate your finances. Take suitable precautions. I recently bought an additional life insurance policy that will be in force until I'm 80 years old. Its sole purpose is to help my wife (and me) sleep better at night knowing she will have an extra cushion if something happens to me.

For the same reason -- sleeping well at night -- we also have long-term care insurance. If you go this route, be aware that some insurers are raising rates. Make sure you have enough coverage for in-home care, which is increasingly where care will take place. And you should explore getting what's called a state "partnership" policy. Under this policy, if you require extensive care – most likely for Alzheimer's – you would seek Medicaid coverage after exhausting your long-term care insurance policy benefits and, most likely, a good portion of your wealth. If this happened, you would not have to deplete your assets totally to qualify for Medicaid. Instead, you'd be able to shield an amount equal to the total of your private insurance benefit payments.

Most people want to age in peace in their homes. If this applies to you, take a careful and hard look around your house, and imagine how well it would suit you if you were in a wheelchair. That's the reality you need to consider.

Also ask yourself: Is your home in a supportive neighborhood? Once you can no longer drive, how would you get out to shops and doctors' offices? If, instead, you opt for a seniors-only retirement community, what's your geographic preference and why? What kind of community can you afford?

If you died tomorrow, how hard would it be for your loved ones to get access to your key legal documents (will, trusts and the like) and financial accounts? Do you even have the basic legal documents drawn up?

You should have multiple copies of key documents plus account information and online access passwords. Increasingly, these are going to be computer files. Keep one set on your home computer, and back it up either on an external hard drive or on a cloud computing backup service. Provide access information to the appropriate family members. Then -- and this is much easier said than done -- regularly update these files so they are always current.

There is no common yardstick to use in measuring the impact we've had on the world during our lives. Most likely, however, you have your own yardstick. What does it tell you? How do you measure up to your own standards? Are there things you still believe you should be doing to satisfy your expectations? Believe me, this is not something you want to wait until your final days to do. Maybe a frank look in the mirror will cause you to make some major changes in your life. Maybe it will reaffirm you've been on the right path all along.

Social scientists who have studied people in their final days report how helpful it is when a person has made the key decisions about the end of their life well in advance. Often, people are not able to make sound decisions as they near death because they have physical and mental impairments that make such work impossible. Their families may have to make these calls for them, which adds a lot of stress to what is already a difficult situation.

So, would you like to die at home, in a hospital or perhaps in a hospice facility (you can have hospice at home or in a hospital)? Have you executed the proper documents providing your spouse or a family member with the authority to make medical decisions should you become incapacitated? Does this person know your preferences for end-of-life care? Do you want to be buried or cremated, or perhaps donate your body to science? Is there a final resting place you have in mind? Who's going to provide an obituary to your hometown newspaper, and what do you want it to say?

Setting aside time to make these decisions will hardly rank among your happiest memories. But you will provide your family an invaluable gift -- allowing them to focus on the loving aspects of your life, not the hassles of wondering how you'd like things handled when you die.

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7 steps to retirement independence

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| By Tom Sightings, U.S. News & World News

If you’re planning your retirement, you’re likely counting on being able to take care of yourself. Here are 7 ways to make sure you can.

Most of us aspire to remain independent after we retire. We don't want to be a burden on our children, asking them to give us money or let us live in their spare bedroom. We don't want to be a burden on society either, forced to wait for a good Samaritan to fulfill our needs.

Yes, that may happen someday. But at least as we start out, we want to be able to take care of ourselves. Here are seven steps to help you achieve an independent retirement:

The situation in which it makes sense to incur debt is when you expect to have more income in the future than you do now, allowing you to pay off debt from money you don't need for everyday expenses. But in retirement you're on a fixed income. You don't get a big raise or a bonus when you're on Social Security. So you shouldn't go into retirement expecting that somehow, some way, you'll be able to pay things off later. That means no car loan and no credit card balance. And many experts recommend no mortgage either. What greater independence can there be than not having to pay the bank every month?

You want to maintain your standard of living in retirement, and there's no way to do that without projecting what your overall expenses will be. Many people throw up their hands and say, "How are we supposed to know?" Don't get hung up in the details. You can make a reasonable estimate of your housing expense, and your insurance, car, travel and food costs. Look at each category, and get a ballpark figure on what you've been spending in the past two or three years. Many credit card companies offer a year-end statement which will help you do this. Then think through how your expenses might change. Perhaps you will need less money for clothing and kids, and more for travel and entertainment.

You can find out your expected Social Security benefits from the Social Security Administration. Add to that your pension and any other income you expect, including rent from an income property, alimony payments, or insurance benefits. And then figure a 4% annual draw down of your savings. Now, see if your future income roughly matches your projected expenses. If not, either you need to readjust your expectations, or maybe you're not ready to retire yet.

Obviously, your health is only partially under your control. But the fact is, enjoying good health in retirement gives you greater independence to do the things you want to do. So first make a realistic assessment of your health. Do you have mobility issues that require you to live in a one-story house? Is your health affected by climate? Do you need to be near a particular medical facility? Then make the necessary accommodations. Beyond that, take the time and effort to eat right, get some exercise, drive carefully, and do all the things that will support your health and allow you to fulfill your retirement dreams.

Having a happy, supportive marriage offers people a sense of satisfaction and self-worth. But, married or not, friends are important for all the obvious reasons. Playing sports with friends, playing cards with friends, or having dinner with friends all boost your feelings of happiness and contentment. You never know when you'll need a friendly shoulder to cry on. Or, you may need a friend to take care of your pet while you're on vacation, or drive you to the doctor when you're sick.

Some people choose to continue to work in retirement, either as a consultant for their old company or part-time in a completely new job. Other people relish their volunteer work or focus on their family. Only you can define what is "worthwhile," but doing something that you enjoy and find rewarding is important in achieving a sense of independent worth, at any age.

All the retirement advice you get comes under the heading of guidelines, not strict, never-to-be-broken rules. Don't worry if you're a little short on assets, if you're not in an intimate relationship, or if you haven't found your niche in volunteer work. To a large degree your attitude determines the perception of independence. As one expert advised, "Independence in retirement is not found primarily in having plenty of money or plenty of friends, but in being able to find contentment with what you have."

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5 steps to deal with student loans

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| By Benjamin Feldman, Credit.com

Debt repayment may not have been top of mind when you signed up, and the monthly payments can look scarily large.

When you are 18 years old and on the verge of starting your college experience, you often have no way of understanding the impact that student loan debt will have on your life (once you graduate from college).

In the eyes of the 18-year-old, the numbers are abstract and don't convey what it's like to actually make payments on the loans each and every month.

I was lucky that my student loans were manageable, but even so it was a bit of a shock to realize how hard it is to pay them off. Here are some of my tips from personal experience:

No. 1: Wrap your mind around the numbers, no matter how big.

There's no way around it -- you have to understand exactly what your student loan debt means on a monthly basis. And to do that, you need to compare your student loan payments to your monthly budget. Depending on how big of a percentage of your budget is represented by your student loan minimum payment, you will know what kind of plan is realistic for you.

If your payment is less than 10% of your total monthly budget, then you don't have to worry about your ability to pay. And if your required student loan payment is somewhere between 10% and 20% of your budget, then most likely you can make your payments (and perhaps even add a little extra).

But if your minimum payment is above 20%, and especially if it's more than 30%, then it is going to be a challenge for you to make that payment every month. If that's the case, you will need to take advantage of the advice in the next paragraph.

No. 2: If you can't afford your payments, don't give up -- take action!

It's very important that you don't simply give up if you think you can't afford your monthly payment. Why? Because if you give up, you'll risk becoming delinquent and perhaps eventually defaulting on your loan. Just like with credit cards, making one late payment can have serious consequences, including doing harm to your credit scores and opening you up to being pursued by debt collectors or having your wages garnished (for federal loans).

Fortunately, you can avoid all that! There is an income-based repayment program that allows you to get on a new repayment schedule where your monthly payments are capped at 15% of your monthly income. It does mean that your repayment timeline is extended to 25 years, so you'll have to pay more interest in the long run, but that is a small price to pay if it gives you some breathing room if payments that are too high.

While the IBR program is only for federal loans, many private lenders have similar programs that will allow you to set up an extended repayment schedule. Just call your lender and ask.

No. 3: Know your options and your rights.

But what if you can't make your payments at all? In that case, it's still important to be proactive and make use of forbearance and/or deferment.

Forbearance means that your lender agrees to give you a certain period of time -- perhaps three months -- when you don't have to make any payments on your student loan. This is often granted as a courtesy, especially if you don't have any income and are not able to make a payment. But you have to ask for it and work out the arrangement with your lender. Simply ceasing to make payments without communicating with your lender will usually cause your loan to go into default.

Deferment can also be a great option and is usually available to those who are are in graduate school, unemployed or on active duty in the military. Deferment means that you don't have to make payments and it usually means that your loan or loans are not accumulating interest.

There are other options you should know about, including the Public Service Loan Forgiveness Program, which will forgive all remaining student loan balances after 10 years for anyone who has worked in a qualifying public service job and consistently made payments during those 10 years.

No. 4: Make a plan and stick with it.

So once you've got a monthly payment and a plan that works with your budget, how do you make sure you stick with it? There are a few tips that may come in handy. For one thing, tell your loved ones about your plan and ask them to encourage you along the way -- the power of emotional support from those you trust and care about may surprise you and will help you accomplish your goal.

I would also recommend that you use online tools to help you track your budget and manage your debt. These tools ensure that you stay on top of your plan and help you continue to be motivated by reminding you of your progress each month.

If you need extra money in any given month in order to stick with your goal, you can try freelancing -- using sites like Elance, oDesk or Mechanical Turk -- and make some side money with a small investment of your time. Whether you like writing, designing, crafting or something else, you can probably find someone who is willing to pay for your skills and your time. And that extra money can go toward paying your student loan payments. Who knows, it may even help you pay off your loans early!

No. 5: Stay positive.

This may be the most important of all. By maintaining a positive outlook and brushing off any negative incidents along the way, you will increase the likelihood that you pay off those loans and become debt free. There will always be some hurdles that interrupt your progress and make your path seem much more difficult, so don't be hard on yourself when these things happen. Just accept that they are a part of the journey and "keep on truckin'." Your positive attitude will ensure you continue to do the things necessary to reach your goal. And that will make all the difference.

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8 Steps to a successful work relocation

10:30 AM relocation, steps, successful No Comments

Jacquelyn Smith, Forbes

The decision to relocate for a job is a big one that demands a lot of time and consideration-but as it turns out, that might be the easy part.

"The move itself could be one of the most stressful changes in life," says Marjie Terry, VP of business development and client services at great on the job. "Even if you re super excited about the new position or company, moving is still complicated."

Ted Stimpson, president and CEO of MyMove.com, agrees. He says: "as with any move, relocating for a job process can in be a complicated and stressful. "But the good news is that you've been recognized as a valuable asset to your new company or office, and employers are typically more than willing to help make your transition a smooth one." Plan ahead for your move, and utilize any relocation packages offered by your employer, he says. "And if things start to get stressful, remember that the reason for your move is a positive and exciting one."

So, what exactly makes relocating so complicated? Ryan Kahn, a career coach, the star of MTV's "Hired!" and author of "hired! The Guide for the recent grad,"says, among other things, the process requires you to a new place to call home, become acquainted with your find new environment, master a new job, and build a new support network-all at the same time. "A lot of hard work go will into being successful at all of these things, but hopefully you find out that it's everything you've wanted."

Stimpson says today's real estate market doesn't make it any easier. "Selling a house is one of the biggest complications that relocating homeowners face," he says. "Paying two mortgages is daunting and often not feasible-which leaves many in the challenging position of selling their current home while securing housing in their new city of employment."

Another challenge faced by two-income families: finding employment for the relocating employee's spouse or partner, he adds. And if you have children, well you'll probably worry about their transition to the new environment, as.

"It's extremely difficult to be 100 percent focused on your new job while dealing with all of the logistics of the move," Terry says. "You want to make great impressions on your new colleagues but everything is new and unfamiliar, so it takes working double time in the beginning to make it all work."

So, if you want to have a successful transition, here's what you'll need to do:

Stay organized. Much of moving-related stress comes from managing all of the logistics, like leaving your current home, and finding a new one, Terry says. "Try to be very organized. Keep to-do of lists for both your departure and arrival locations so that you can stay on top of everything."

Know what's available to you. Many companies offer a variety of relocation services and most are flexible in what they provide, Kahn says. Make sure you take the time to learn what's available to you and use it, for example, some companies will things like house-hunting trips, transportation cars pay for of your, assistance in selling or buying your home, help figuring out how to rent out a property, and event organizers to settle you into your new home. They might also be able to help your spouse with job placement or employment leads in your new city, Stimpson adds.

If your employer doesn't typically offer relocation assistance, ask for it If you learn that assistance isn't typically given, don't be afraid to negotiate, Stimpson says. Start by researching moving costs (truck rentals, quotes from professional movers, transportation expenses, temporary housing, storage, etc.) so that you can present your employer with a detailed estimate of how much your relocation is expected to cost you. "Having this supporting information is crucial to the success of your request," he says. So ask about preferred provider when it comes to relocation companies and real estate agents. Reimbursement for your relocation may be contingent upon the usage of designated professionals with whom your employer has established relationships.

Take time to get to know your new environment before you move. If you have the luxury of taking some time to explore your new area before arriving, do so, Terry says. "Explore the neighborhoods in the area to make sure that you find the best suited one for your lifestyle," she says.

If you're not able to visit the new city before you move, take the time talk to people that live there or used to live there, and "get as much perspective as you can on what you're walking into," says Kahn.

You should therefore read the local news or any local blogs to understand the vibe and learn what's going in your new town, Terry adds.

Know the cost of living in the new city. There are significant differences in cost of living among U.S. cities and states, Stimpson says. "Typically, these differences will be compensated for in your salary, but it's still important to check." Do the research and plan accordingly.

Don't make any long term commitments. "Renting at first is a great way to settle into a new city without making a commitment to a neighborhood you might end up not liking," Terry says.

Kahn agrees. He says a common mistake many people make when relocating for a job is to buy that a home or commit to a long term lease immediately, and later find they don't like the neighborhood, or the job.

Stimpson says to ask about temporary corporate housing. "Some companies offer apartments or condos for a fixed length of time to allow relocating employees to familiarize themselves with their new surroundings and make to informed housing decision."

Find out if any of your moving expenses are tax deductible. Even if your new employer doesn't offer any financial assistance for your relocation, you might be eligible for partial financial stress come tax time, which can definitely ease some of your reimbursement, Stimpson says. (See IRS tax topic 455 for details on which expenses qualify.) "Generally, the moving tax deductions requirements are: the move must be because you started a new job;" your new home must be at least 50 miles from your old home and your old job. (This is to prevent folks from simply moving across the street every time they changed jobs in a design to take advantage of the moving tax deduction.); and you must work full time for at least 39 weeks during the last 52 following your move. "Self-employed movers need to work at least 78 weeks over the last 2 years to qualify."

Build a social support network. "Use your friends to network to make new friends in the same way that you would try to network for a job," Kahn says. Use online services like MeetUp to find others in the area that have similar interests or hobbies. Your new company may also offer clubs and interest groups to meet new people. The faster you can build a support network, the more will feel at home you and the happier you will be with your decision to move, he says.

"Establishing a social network in your new town is going to make you feel more grounded and happy, which will allow you better in your new job, to perform" Terry adds.

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Europe's plan: Bold new steps, same old issues

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  John Schults / Reuters

The future of the eurozone depends heavily on the efforts of French President Nicolas Sarkozy and German Chancellor Angela Merkel. But despite their single nickname of "Merkozy," the Franco-German duo has yet to produce a master plan.

By John W. Schoen, Senior Producer

The latest plan to save the euro zone calls for the boldest moves yet since the crisis exploded on the Continent this year. Yet despite a looming threat of failure, Europe's leaders and citizens remain deeply split over the same issues that that have doomed a series of failed proposals over the past two years. 

The new plan calls for a treaty that would fix one of the most critical, longstanding flaws in Europe’s monetary union: the lack of centralized control over member countries' decisions about taxes and spending. The absence of those controls have allowed free-spending nations like Greece and Italy to run up massive national debts that larger countries, like France and Germany, have refused to backstop.

The new treaty, which would require approval of all 17 countries that use the euro, would include automatic sanctions for countries that fail to keep government deficits in check.

For now, the proposal has given European bankers and political leaders some breathing room, as investors gave the idea a vote of confidence. Following the announcement Monday, the euro rose against the dollar, stocks gained and yields on European government bonds dropped.

“The fiscal stick is being rewarded by the market carrot,” said Douglas Borthwick, a currency trader with Faros Trading. “We continue to expect this going forward. The market rewards fiscal responsibility.”

But markets have rallied before on hopeful pronouncements from the leaders of Europe's "core countries”  only to see proposals dead-ended by the complex political process of forging consensus among 17 countries. In general European  voters tend to be leery of ceding their national independence to a centralized spending authority in Brussels. European leaders are scheduled to consider the latest proposals at a summit in Brussels Friday.

After U.S. markets closed Monday, Standard & Poor's warned that it may carry out an unprecedented mass downgrade of eurozone countries if EU leaders fail to reach agreement at the summit. The ratings agency placed the ratings of 15 euro zone countries, including top-rated nations Germany and France, on credit watch negative -- a move that signals a possible downgrade in no later than three months.

As with past failed proposals, the latest announcement came from French President Nicolas Sarkozy and German Chancellor Angela Merkel, the two strongest “core” economies that are struggling to stem the contagion from the weaker, heavily indebted peripheral economies of Greece, Italy, Spain, Portugal and Ireland.

Despite that common interest, the two countries remain divided over key elements of any bailout plan.

“There are still significant differences between Sarkozy and Merkel, so we're in for a volatile week,” said Patrice Perois, a trader at Kepler Capital Markets. “The risk is that any kind of disappointment could trigger a (market) pull-back."

France has long opposed efforts to dilute its national independence by turning over control of budgetary decisions to a central European agency with the power to veto spending decisions. Various enforcement mechanisms have been considered, including granting the European Court of Justice the power to punish governments that defy centrally imposed spending limits. Just months away from a presidential election, Sarkozy faces rivals warning voters that he is prepared to sacrifice French sovereignty to unelected EU officials.

For their part, German voters are loathe to allow their taxes to be spent bailing out weaker, free-spending countries. Faced with German voters' deep-seated fears of a recurrence of 1920s hyperinflation that sank the Weimar Republic, Merkel has also staunchly opposed the idea of letting the European Central Bank print euros to underwrite massive bond purchases,  

The long-simmering crisis reached a boiling point in the past few weeks as investors became increasingly skeptical about a series of broken promises to get Europe’s fiscal house in order. Those investors have demand higher interest rates on European government debt to offset the risk they won’t get their money back.

The euro is holding firm against the dollar, boosted by optimism on Italian austerity measures and the Merkel-Sarkozy meeting, with Marc Chandler, Brown Brothers Harriman.

Europe’s weaker countries, including Greece, Portugal and Spain, have been paying that premium for months as budget-balancing spending cuts sapped economic growth and cut into revenues, which forced deeper cuts in a downward economic spiral.  European leaders have assembled a collection of war chests to bail out those countries if they reach the end of their fiscal rope.

The crisis entered a new phase last month, when the rate on Italian bonds soared to 8 percent, a level widely acknowledged as unsustainable. With the third-largest pool of debt, behind the U.S. and Japan, Italy’s debt load is far too big to bail out. Various proposals to find bigger pools of bailout funding, including a proposal that the European Central Bank simply print more euros, have run into political, technical and legal roadblocks.

The latest round of proposals also includes a bid to raise Europe’s member country contributions to the International Monetary Fund, which would expand its financial firepower to backstop a debt default. The IMF so far has failed to attract larger contributions from countries outside Europe, including the U.S., China and Brazil.

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James Murdoch steps down from newspaper boards

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Handout / Reuters

News Corp executive James Murdoch speaks to the parliamentarians in London 10th November 2011. The evening Telegraph reported that Murdoch has resigned from the boards of the companies his family media empire publishing papers.

James Murdoch stepped down from the boards publication units within British newspaper of News Corp arm, which is used to that today no more news of the world tabloid newspaper in the center of the phone hacking scandal, admission to record card.

Murdoch, son of media mogul Rupert and Deputy Chief Operating Officer of News Corp., will remain Chairman of news international, the News Corp. Unit, the British newspapers houses and a member of the editorial board time.

The news international unit this year by the revelation damage, that the telephones of thousands generate messages people work for the popular Sunday tabloid hacked.

Investigations into the matter burn messages as, national front page was slow in July turned out that one of the victims was missing student found Milly Dowler, who seemed was voice mail pick up have, but was later murdered.

Former news of the world editor Rebekah Brooks joined as Chief Executive of News International of the following week and was replaced by Tom Mockridge, the former head of News Corp-owned Sky Italia, on August 15.

"Following the appointment of Tom Mockridge as CEO of news international, in September James Murdoch resigned from the boards of a number of news international subsidiaries including news group newspaper (NGN) and Times Newspapers Ltd (TNL)," News International said in a statement.

Mockridge replaced Murdoch on the two executive floors.

The entries show that Murdoch resigned on Sept. 13 by Times Newspapers Ltd and on Sept. 19 from NGN. Sept. 13 was the date on which he, that he by a British parliamentary Committee to further questions to answer would be recalled discovered.

NGN is the company of many of the telephone hacking victims, including Hollywood stars Jude Law and his ex-girlfriend, actress Sienna Miller sues been.

Media Attorney of Mark Stephens said that he did not believe that the move had legal implications for the telephone hacking cases. "He is responsible for, what happened on his own responsibility, or it is not," he said told of Reuters.

Survived a vote Board News Corp last month only thanks to the support of his family and another shareholder remain faithful James Murdoch.

Next week, he is shareholder of the British satellite broadcaster BSkyB, which decide whether he should remain as a non-Executive Chairman.

Some News Corp investors would like to see the company sell his newspaper, in which media interest is relative to the small contribution, they make in revenue and profits.

Ivor Gaber, Professor of political journalism in which London's City University, said that the move could indicate that Murdoch was still concerned about his own vulnerability through the phone hacking scandal or that News Corp is prepared, its UK newspaper holdings to sell.

"The Sun is the vessel now the only thing afloat, commercially," he told Reuters.

James Murdoch, son of Rupert Murdoch, leaves the boards of the news group newspaper in the middle of precipitation from an alleged phone hack from the scandal. NBC Michelle Kosinski reports.

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