The Clark Howard Podcast - Episode Released on June 11, 2025 Episode Title: Save More On Home Internet / Seek The Total Price

Introduction

In this episode of The Clark Howard Podcast, host Clark Howard delves into the escalating costs of home Internet services and offers actionable strategies to help listeners save money. Additionally, Clark addresses several listener questions, providing expert advice on topics ranging from mortgage payments to retirement planning. The episode also includes a candid discussion on deceptive pricing practices, commonly referred to as "junk fees."

Rising Home Internet Costs and Emerging Alternatives

Clark Howard opens the discussion by highlighting a significant increase in home Internet costs. Referencing a CNET survey, he points out that the average consumer is paying nearly $200 more annually for Internet services compared to the previous year.

"The CNET survey found that the average consumer in an apartment or a home is paying just under $200 more right now for Internet per year than you did a year ago." (02:00)

Factors Driving the Price Hike:

1. Declining Customer Base for Cable Providers: Major cable companies like Comcast are experiencing a loss in customers due to substantial price increases. Despite reporting strong profits, their customer base is shrinking as consumers seek more affordable options.

2. Increased Competition: The landscape for Internet service providers has broadened significantly. Consumers now have access to alternatives beyond the traditional cable or local phone companies, including:

   • Independent Fiber Providers: Offering direct fiber connections to homes at competitive rates.
   • Google Fiber (G Fiber): Although initially slowing its expansion, Google Fiber is gradually rolling out services in more areas at reduced prices.
   • Wireless Home Internet: Providers like Verizon and T-Mobile now offer wireless Internet services, especially beneficial for rural areas.
   • Starlink: Providing high-speed, reliable Internet for rural families through portable units.

Clark emphasizes the importance of consumers actively seeking these alternatives to avoid being overcharged by monopolistic providers.

"Don't be somebody who's just being taken advantage of by the cable monster or the monopoly local phone company. No, you've got options." (05:00)

Strategies to Save on Internet Costs:

• Comparison Shopping: Clark advises listeners to thoroughly compare different Internet plans, taking into account not just the base price but also any additional fees or unnecessary speed packages.

• Leverage Promotions for New Customers: Many providers offer discounted rates for new customers, allowing significant savings compared to the standard rates charged to existing customers.

• Assess Actual Needs: Often, consumers may be paying for higher Internet speeds than necessary. Evaluating and adjusting the service to match actual usage can lead to substantial cost reductions.

Listener Questions and Expert Advice

The latter part of the episode features Clark addressing several listener-submitted questions, offering personalized financial guidance.

1. Mortgage Payments vs. Investment Contributions

Listener: Jeff from Nebraska inquires about whether to continue paying down his mortgage or resume investment contributions.

"Our question is... should we keep putting extra money toward the mortgage balance or focus on our Roth IRAs?" (07:05)

Clark's Advice:

Clark recommends prioritizing investments in Roth IRAs over additional mortgage payments, especially given the current mortgage rate of 4.25% with an expected increase. He argues that Roth IRAs typically offer higher long-term returns compared to the interest saved from paying down a mortgage early.

"I'd rather you spend this time moving forward putting that money into Roth IRAs for each of you instead of prepaying on the mortgage." (08:03)

2. Co-ownership of a Family Boat

Listener: Ira Drew from Alabama seeks advice on retitling a family fishing boat to both his and his father's names and the implications for insurance.

"How should we go about retitling the boat and insuring it under both our names?" (09:24)

Clark's Advice:

Clark strongly advises retitling the boat to include both names. This step ensures that both parties have legal rights to the vessel and facilitates joint insurance coverage, thereby safeguarding against potential future disputes or legal complications.

"It's really easy to retitle the boat and it's not expensive... just offer to buy your dad lunch after you both go to the title office." (10:07)

3. Velocity Banking and Debt Management

Listener: Kimberly from Virginia asks about the effectiveness and risks associated with velocity banking as a method to pay off debt.

"What are your thoughts on velocity banking for getting debt free?" (10:47)

Clark's Advice:

Clark explains that velocity banking, which typically involves using a home equity line of credit (HELOC) to pay off a mortgage, carries significant risks. He cautions against converting a fixed-rate mortgage into a variable-rate loan and highlights the potential for increased debt if not managed meticulously.

"Paying off a mortgage with a floating rate home equity line of credit is normally a bad idea... You're playing a bit with fire." (11:03)

He concludes that unless an individual is fully aware of the associated risks and can maintain strict financial discipline, velocity banking is not advisable.

The Prevalence of "Junk Fees" in Modern Commerce

Clark shifts focus to a broader issue affecting consumers: deceptive pricing practices, often disguised as "junk fees." He laments the widespread nature of these practices across various industries, including Internet services, entertainment, and travel.

"The idea of bait and switch... today, bait and switch is so common, we call them junk fees now." (17:05)

Examples Highlighted:

• Internet Services: Websites may advertise a low monthly rate, but the actual cost skyrockets once additional fees are included.

  "It was really funny because there was a TV ad I saw that showed an Internet service for $30 a month... turned out to be $48 a month once all the junk fees were added in." (18:00)

• Concert and Event Tickets: Initial ticket prices are often inflated by hidden fees during the checkout process, sometimes doubling the original cost.

  "My favorite... Live Nation... parking can be twice as much due to junk fees." (19:00)

Clark's Recommendations:

• Total Price Transparency: Encourage consumers to use platforms or features that display the total cost upfront, including all fees and taxes.

• Avoid Aggressive Shopping Tactics: Warn against committing to purchases without understanding the full financial implications.

• Stay Informed and Critical: Urge listeners to remain vigilant and question discrepancies in advertised versus actual prices.

"Don't let people take advantage of you... comparison shop and make a smart decision for your wallet." (19:30)

Additional Discussions

European Airline Carry-On Policies

Listener: Mike from Georgia shares his frustrating experience with oversized carry-on fees on European airlines.

Clark advises:

• Check Specific Airline Regulations: Airlines like Ryanair may have stricter or non-standard size requirements.

• Purchase Extra Allowances in Advance: To avoid exorbitant fees, pre-pay for checked bags when possible.

• Shopping for Compliant Luggage: Recommend purchasing carry-ons that meet European size standards through retailers like Amazon.

"Some airlines in Europe don't follow the European standard and they enforce a smaller one... it cost us around €20 to prepay for the bag and send it as a checked bag." (21:00)

Optimizing Airline Miles for Upgrades

Listener: Martha from Oregon seeks advice on using Alaska Airlines miles to book first-class tickets for her Hawaii trip.

Clark suggests:

• Book Economy First: Secure coach seats using miles and monitor for upgrade opportunities.

• Patience Pays Off: Regularly check for mile redemption deals that may allow for affordable upgrades without exhausting miles too quickly.

• Prioritize Travel Experience: Weigh the benefits of saving miles for other financial priorities over the immediate upgrade.

"I'd rather you use the difference in equivalent money you're having to pay to stay in a nicer place in Kauai when you're there." (26:22)

Transitioning from Traditional to Roth 403B

Listener: Rhonda from Texas plans to switch from a traditional 403B to a Roth 403B and is concerned about the tax implications.

Clark advises:

• Gradual Transition: Move funds incrementally to avoid a hefty tax bill in any single year.

• Maintain Existing Accounts: Continue contributing to the traditional 403B while building the Roth 403B portfolio.

• Utilize Resources: Directs Rhonda to 403B Wise for comprehensive guidance on managing 403B accounts effectively.

"You do it gradually so you don't kill yourself with tax bills over time... moving money from traditional to Roth." (28:46)

Conclusion

Clark Howard wraps up the episode by reiterating his mission to help listeners take control of their finances. He emphasizes the importance of informed decision-making, vigilant comparison shopping, and leveraging available resources to avoid financial pitfalls.

"Save more, spend less, and avoid getting ripped off... you make a smart decision for your wallet." (19:30)

Listeners are encouraged to continue subscribing for daily newsletters and to engage with the show by submitting their own questions for future episodes.

Key Takeaways:

• Explore Alternative Internet Providers: With the rise in traditional service prices, new providers offer more affordable and competitive options.

• Prioritize Investments Over Mortgage Payments: Allocating funds to Roth IRAs can yield better long-term financial growth compared to prepaying a mortgage.

• Be Wary of Velocity Banking: While potentially beneficial in specific scenarios, it carries significant risks that may outweigh the benefits for most individuals.

• Guard Against Junk Fees: Always seek transparency in pricing to ensure you're aware of the total cost before making a purchase.

• Plan Airline Travel Strategically: Understanding and adhering to airline-specific policies can save money and reduce travel-related stress.

• Smart Retirement Planning: Transitioning to Roth accounts should be done thoughtfully to balance tax implications and financial growth.

By addressing these topics, Clark Howard provides listeners with valuable insights and practical advice to enhance their financial well-being.