The Clark Howard Podcast: Managing Junk Calls, Texts & Emails / Water Shortage Ingenuity

Episode Release Date: February 26, 2025

Introduction

In the February 26, 2025 episode of The Clark Howard Podcast, Clark Howard delves into two primary topics: managing the pervasive issue of junk calls, texts, and emails, and exploring innovative solutions to the global water shortage. Throughout the episode, Clark addresses listener questions, providing expert advice on personal finance and consumer protection.

1. Tackling Junk Calls, Texts, and Emails

Clark Howard opens the episode by addressing the modern nuisance of spam communication. He emphasizes the prevalence of junk calls and texts, highlighting their impact on daily life.

"[...] companies that are legit, organizations that are not legit, and out and out scamsters. No, they're trying to get to us any way they can."
— Clark Howard [02:52]

Key Points:

• Increase in Junk Communications: Clark notes a significant rise in junk phone calls and texts, attributing this surge to criminals leveraging internet technology to place calls virtually for free from anywhere in the world.

• Pretexters Defined: He introduces the concept of "pretexters" — individuals who send misleading texts posing as reputable entities like banks or utility companies. Clark warns against clicking on links from such sources to avoid potential viruses or phishing scams.

"Do not click on links inside text from who you think is a trusted sender, but very well may not be."
— Clark Howard [04:15]

• Call Answering Etiquette: Clark advises against answering calls from unfamiliar numbers, suggesting that legitimate callers will leave a voicemail if necessary. This strategy helps reduce exposure to unsolicited and potentially harmful communications.

"The call I don't answer can later turn out to have been a legitimate call. If it's legit, they'll leave a voicemail if they really need to talk to you."
— Clark Howard [04:55]

Listener Insights:

Krista, the co-host, confirms that junk phone calls are more prevalent than junk texts, reinforcing the urgency of the issue.

"Phone calls. I get a lot of junk phone calls. Never answer them."
— Krista [05:14]

2. Listener Questions and Expert Advice

Clark Howard dedicates a significant portion of the episode to addressing listener inquiries, offering tailored advice on various financial and consumer topics.

a. Switching Credit Cards Without Hurting Your Credit Score

Listener: Zach from Texas

Query: Zach holds a United Club card and a United Explorer card but finds the fees outrageous. He considers switching to the Capital One Venture X card but is concerned about the impact on his excellent credit score due to high credit limits.

Clark's Advice:

Clark analyzes Zach's situation, considering his frequent international travel and the benefits of switching to a more versatile card like the Capital One Venture X or Chase Sapphire Reserve. He emphasizes the importance of “hopscotching” — strategically applying for a new card before downgrading the current ones to maintain credit history and minimize impact on the credit score.

"It's all about hopscotching. So you apply for the Venture X card... There'll be no difference with your great credit score."
— Clark Howard [05:56]

He also suggests downgrading the United cards to those with no or minimal annual fees to preserve available credit and maintain a healthy credit utilization ratio.

b. Reducing Home Insurance Coverage

Listener: Laura from Oklahoma

Query: Laura owns her home outright and wishes to reduce her insurance coverage since her personal property does not warrant the current $300,000 policy. She is frustrated by insurance companies requiring a certain level of coverage.

Clark's Advice:

Clark explains that insurers often require coverage to match the real value of the home to ensure adequate rebuilding costs. He advises Laura to shop around and obtain quotes from different insurers, possibly through an independent agent, to find a policy that better aligns with her actual needs.

"If you're fed up with them, you want to get quotes from other homeowners, insurers, you might go to an independent agent to get quotes from other insurers..."
— Clark Howard [09:55]

He emphasizes the importance of understanding the insurer’s requirements and finding a policy that provides sufficient coverage without unnecessary extras.

c. Evaluating Trip Insurance Offers from Airlines

Listener: Joseph from Georgia

Query: Joseph received a solicitation from Southwest Airlines to purchase trip insurance through a third-party company, costing $259 annually for comprehensive coverage. He seeks insight into the reliability of such offers.

Clark's Advice:

Clark cautions Joseph about the fine print associated with airline-solicited insurance policies. He points out that these policies often come with stringent activation terms and may not cover immediate medical evacuations post-incident.

"These policies are so arcane and not what the brochure brags about. You get this, this, this and this... read closely the reviews to see what are the gotchas."
— Clark Howard [12:37]

He advises conducting thorough research, reading reviews, and understanding the terms and conditions before committing to such insurance products.

d. Consolidating Retirement Accounts

Listener: Michael from Florida

Query: Michael has grown his 401k from $50,000 to $125,000 and later to $260,000. After leaving his previous company, he wishes to consolidate his old 401k with his new Simple IRA at Charles Schwab but fears potential downsides.

Clark's Advice:

Clark commends Michael on his successful savings journey and explains the benefits of consolidating retirement accounts to reduce administrative fees and simplify management. He highlights that insurance company-provided 401k plans typically have higher embedded costs compared to Simple IRAs.

"You've got between the simple and your 401k, you've got over $300,000 you saved already and you should be really proud of what you've done."
— Clark Howard [22:45]

Clark recommends transferring the old 401k to the Simple IRA at Schwab to benefit from lower fees and better investment options, ensuring a more efficient growth of his retirement funds.

e. Maximizing Gasoline Discounts with Credit Cards and Apps

Listener: Sarah Lee from Texas

Query: Sarah holds a Sam's Club credit card offering 5% cashback on gas and a Walmart Plus account that provides a 10-cent per gallon discount. She inquires if she can combine these offers when purchasing gas at Sam's Club pumps.

Clark's Advice:

Clark suggests experimenting to determine if both discounts can be applied simultaneously, a practice known as "double stacking." However, based on common experiences, he anticipates that only one of the discounts will apply.

"Most people say they did not get both discounts."
— Clark Howard [25:22]

He also shares an update about Costco's MasterCard, which now offers 5% cashback on gasoline purchases at Costco pumps, up from the previous 4%.

f. Understanding Gasoline Grade Price Differences

Listener: John from Kentucky

Query: John observes that the price difference between gasoline grades has widened, with a 50-cent spread in some cases, and seeks clarification on this trend.

Clark's Explanation:

Clark elucidates that the varying prices between gasoline grades are primarily driven by marketing strategies rather than significant differences in wholesale costs. Higher grades cater to less price-sensitive customers, allowing retailers to implement greater markups.

"It's a marketing thing and the oil companies learned that people who buy a higher grade either are luxury vehicle drivers or people that are not that price sensitive."
— Clark Howard [26:20]

He clarifies that the substantial price gaps are a result of retailers capitalizing on consumer willingness to pay more for premium fuel, rather than substantial differences in production costs.

3. Water Shortage Ingenuity

Transitioning from personal finance to global issues, Clark Howard discusses the escalating water shortages affecting both developed and developing nations. He shares optimistic developments in desalination technologies aimed at making seawater conversion to potable water more affordable and efficient.

"Researchers at the University of Michigan and Rice University have made key advancements to make desalination much, much, much cheaper."
— Clark Howard [16:58]

Key Highlights:

• Technological Breakthroughs: Advances in engineering have significantly reduced the costs associated with desalination, making it a viable solution for everyday use.

• Accessibility: Clark emphasizes the potential for these innovations to provide reliable and affordable water supplies, particularly leveraging the vast coastlines available for seawater access.

• Optimism for the Future: He expresses confidence in human ingenuity to overcome large-scale challenges like water scarcity, highlighting the role of developed countries in pioneering solutions that can eventually benefit the global population.

"Human beings adapt, human beings overcome. And we are going to do that with having safe, reliable, affordable water supplies."
— Clark Howard [20:00]

Conclusion

Clark Howard wraps up the episode by reiterating the importance of consumer empowerment and informed decision-making. He encourages listeners to utilize available resources, such as Clark.com, for personalized financial advice.

"What we're all about is your empowerment with knowledge so you can save more, spend less and avoid getting ripped off."
— Clark Howard [26:25]

The episode offers a blend of practical advice on combating spam communications and insightful commentary on potential solutions to one of the world's pressing issues — water scarcity. By addressing listener questions with expertise and optimism, Clark Howard continues his mission to empower individuals in their financial and personal lives.

Resources Mentioned:

• Clark.com/askclark: Submit your questions and join the conversation.
• Clark.com and ClarkDeals.com: Free resources to help consumers save more, spend less, and avoid ripoffs.

Connect with Clark and Team Clark:

For personalized advice and more insights, visit www.clark.com or follow The Clark Howard Podcast through your preferred podcast platform.