Return to Transcripts main page
CNN Saturday Morning News
Consumer Advocate Gives Consumer Tips
Aired October 19, 2002 - 08:48 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KATHLEEN KENNEDY, CNN ANCHOR: Nice pictures, Howard.
CLARK HOWARD, CONSUMER ADVOCATE: How about that picture?
MILES O'BRIEN, CNN CORRESPONDENT: Wait a minute. Like you've got to be number one, a president, and number two, dead, to get that distinction. And there you were.
HOWARD: I've just raised money (UNINTELLIGIBLE).
KENNEDY: He might be if he knows it would save more money.
O'BRIEN: Not many people know much about the Howard administration but they balanced the budget. We do know that much. Anyway...
KENNEDY: You looked very surprised.
O'BRIEN: That's quite an honor.
All right, it's good to have you back.
HOWARD: Thank you.
O'BRIEN: And we begin, as where we always begin with you, give us the cost of your attire.
HOWARD: Oh, well, this is a special item right here because I was flying out of town to give a speech. I got to the place I was going out of town, opened my suitcase...
O'BRIEN: No suit.
HOWARD: My suit wasn't there.
O'BRIEN: Boy.
HOWARD: It was on the bed at home. So what did a smart shopper do?
O'BRIEN: A smart shopper went to the nearest clothing store and got a suit quickly.
KENNEDY: Go to Saks? No.
HOWARD: No, I went to Salvation Army and Goodwill and thrift stores. O'BRIEN: You did not?
HOWARD: I did.
O'BRIEN: You did not.
HOWARD: I did and this was one dollar at a Goodwill in...
O'BRIEN: It was a used suit?
HOWARD: That's right.
O'BRIEN: Yes. No kidding?
HOWARD: Yes. Was a dollar too much for it?
O'BRIEN: A dollar? Let me feel that. That's not bad. Yes, you know...
HOWARD: It's actually a very nice suit.
O'BRIEN: It's pretty nice.
HOWARD: You know, men's suits...
O'BRIEN: One dollar?
HOWARD: Men's suits are the coolest deal used because so many guys will buy a suit and they either don't wear it except on special occasions or, you know, as guys our weight will fluctuate so much and we'll buy a suit and we'll never be able to wear it.
O'BRIEN: Well, speak for yourself. But anyway, go ahead.
HOWARD: Your weight's always exactly what you want it to be.
KENNEDY: What I want to know is what your wife thinks about this suit.
HOWARD: Well, my wife thinks I'm a little kooky with this stuff.
KENNEDY: Right.
O'BRIEN: One dollar. You cannot beat that one.
HOWARD: It's pretty good.
O'BRIEN: But you know what? Who would know that it's used, right? And the shirt --
HOWARD: I just told you.
O'BRIEN: Yes, all right.
HOWARD: See, that's the bad part.
O'BRIEN: Well, but it's, you know, it actually is good for you. Anyway...
HOWARD: This shirt was actually cheaper than the last one I wore.
O'BRIEN: Really?
HOWARD: This one was $9.99.
O'BRIEN: $9.99.
HOWARD: Yes.
O'BRIEN: A few synthetic fibers, but that's the way you like it.
HOWARD: Sixty percent cotton.
O'BRIEN: All right...
HOWARD: Do you know there are new shirts out in the marketplace that are a hundred percent cotton that you do not have to iron?
O'BRIEN: Oh, my gosh, it's nirvana.
HOWARD: New technology, yes.
KENNEDY: That's all right.
HOWARD: Yes, yes.
KENNEDY: You like the idea of that. Do they come in kids' sizes?
HOWARD: They're too expensive right now for me. I have to wait for it to work its way down.
O'BRIEN: They're above 10 bucks. Forget about it.
HOWARD: No, they're about $34.
O'BRIEN: Oooh, ouch, ouch.
KENNEDY: Oh, boy.
HOWARD: No chance I'd spend that.
O'BRIEN: All right, you know, we probably should allow our viewers to participate in this little coffee klatch we've got going here.
KENNEDY: Yes, get some input from our viewers, yes.
O'BRIEN: A guy with a handle of witchwells@aol.com has this one for you, Clark. It is a good question. If interest rates are so low, why are credit cards now raising rates on all cards?
HOWARD: Well, actually what they're doing is they're slicing and dicing the market, because there are three types of credit card customers. There are the people who pay their balance in full every month, which is about 40 percent of customers. Then there are about 30 percent of customers who pay much more than the minimum each month. They're getting the best deals on interest rates. But that other 30 percent who are paying only the minimum, the credit card companies are putting a dagger right through your heart. They're raising interest rates, believe it or not, right now as high as 35 percent.
O'BRIEN: Oh, my goodness, gracious. Wow.
HOWARD: I want you to try to imagine paying 35 percent on your credit cards.
O'BRIEN: Wow.
KENNEDY: I can't believe 40 percent of the people pay them every month.
HOWARD: Isn't that neat?
KENNEDY: That's great.
HOWARD: Well, you know, that's because of all the reward cards. There are people who are using credit cards as just a payment system...
O'BRIEN: Yes, get the mileage.
HOWARD: ... to get mileage or get cash back.
O'BRIEN: Absolutely.
HOWARD: Cash back is better than miles, by the way.
O'BRIEN: It is? Really?
HOWARD: Yes.
O'BRIEN: All right. All right.
HOWARD: Sorry, I shouldn't say cash back, but...
KENNEDY: Miles.
HOWARD: But it is better because with cash back you're actually getting...
O'BRIEN: No offense taken.
HOWARD: Right. You're actually getting money to put in your pocket, where with miles you may not be able to redeem them because of how hard the airlines make it for you to redeem frequent flier miles.
O'BRIEN: And they're making it harder all the time.
HOWARD: Exactly. O'BRIEN: That's, we should do a whole segment on how the airlines treat their customers.
KENNEDY: We've got a caller from Georgia on the line.
O'BRIEN: Let's get a caller in.
KENNEDY: David?
DAVID: Yes?
KENNEDY: What's your question?
HOWARD: Good morning, David.
DAVID: Good morning, Clark. I love you. I listen to you locally all the time and you're great.
I have a question regarding 401(k)s and a process that I've just heard about called mapping. Are you familiar with it?
O'BRIEN: Mapping?
HOWARD: Mapping? Teach me.
DAVID: Well, what they do is if you have been in a fund and hung with a fund that's been losing for a long time, they then say well, this fund's not doing anything, we're getting rid of this fund and we're going to put you in the next closest fund we have to it.
O'BRIEN: Oh...
HOWARD: OK, yes.
O'BRIEN: Without, you have no choice in the matter? Is that it?
DAVID: Right.
HOWARD: Actually, a number of mutual fund companies are eliminating their dog funds right now and merging them with other funds. So I guess this is a similar kind of event. So how much have you lost in your 401(k)?
DAVID: Well, since April I've lost $10,000 out of $48,000.
O'BRIEN: Ouch. Ouch.
HOWARD: And, you know, it's been a really bad year for most of us in 401(k)s. That's just part of the drill right now with 401(k)s. The most important thing for you to do, though, is as long as you're diversified in that 401(k), is to stay in the game.
O'BRIEN: Do what I do, don't open the envelope, put it right in the drawer and forget about it.
KENNEDY: Oh, lord. O'BRIEN: All right, let's get another e-mail then we'll do a call. "What advice can you give us about debt management programs? We have some credit card debt due to job loss and have been looking into these programs as a last resort. We have been told, however, that this isn't viewed much better than bankruptcy in the eyes of lenders. What's the deal?" From Scott. Good question, Scott.
HOWARD: Yes, the deal for Scott is this, and, Scott, this is true for everybody. Right now on TV there's ad after ad after ad for these companies, just call us, one call does it all, we'll handle your debts, we'll negotiate with your creditors. Be very careful. Most of these companies are actually working to your detriment, not to your benefit. They're charging you huge fees that they don't disclose to you, or if they do, it's in the mice type of a contract, for negotiating with your creditors.
What I'd much rather you do is make one stop on the Web to nfcc.org. That's the National Foundation on Credit Counseling. That's the legitimate place for people to go for help with their debts. And you know what's interesting? About a third of the people who go there only need help with a budget. People go there thinking that it's way past too late, they need somebody to be their advocate...
O'BRIEN: And it's not as bad as they think?
KENNEDY: Yes, right.
HOWARD: Right. So about another third of people actually do need the help of negotiating a plan, and that plan will harm your credit for a while, being in a debt management plan.
O'BRIEN: But better than bankruptcy?
HOWARD: Better than bankruptcy because you're honoring your debts and it's less expensive than bankruptcy. Sop once again, the Web site for information and for referral is nfcc.org.
O'BRIEN: All right, nfcc.org. We'll try to get that up in a bit.
KENNEDY: Clark, we talked about car problems a little earlier and we have Edna from Georgia on the line.
O'BRIEN: Hello, Edna.
EDNA: Hello, Clark. Thank you.
HOWARD: Good morning, Edna.
EDNA: You're such a good person. I listen to you all the time.
HOWARD: Well, I'm glad that you do.
EDNA: Clark, I've got a problem. I bought this new car and I've carried it back to the company about 12 times to get it fixed. It seeps air through the windows.
O'BRIEN: Ouch. Ouch.
HOWARD: Twelve times?
EDNA: Twelve times. And they keep giving me the runaround.
HOWARD: Did you buy -- you said it was new.
EDNA: Yes, sir.
HOWARD: Was it new to you or a brand new car?
EDNA: It's a brand new car, yes.
HOWARD: All right. How many miles did it have on it when you first had the problem?
EDNA: Twenty-three miles.
O'BRIEN: Oh my goodness.
HOWARD: OK, how many service tickets do you have?
EDNA: I've already had it done 12 times...
HOWARD: No, but how many service -- you have 12 actual service tickets?
EDNA: Yes, sir.
HOWARD: Why haven't you lemon lawed this car?
EDNA: Pardon me?
HOWARD: You should use the lemon law. Are you familiar with the lemon law?
EDNA: No, sir, I ain't, Clark. I don't know anything to do.
HOWARD: OK, all right, with a new car in all the states you have a right to try to get the state to force the manufacturer to buy the car back. And the lemon law process is similar from state to state. You have to have a certain number of service tickets. Depending on the situation with the car, you have to have one to four service tickets, where you have 12. So the right thing to do is -- I'm going to direct her to the Web.
Are you Internet active, by the way? I can't hear her.
O'BRIEN: Edna?
EDNA: Yes, sir?
O'BRIEN: Do you use the Internet?
EDNA: Yes, sir.
O'BRIEN: Oh, good. Right. Good.
HOWARD: Great. I want you to go to autopedia.com. You go to autopedia.com, you're going to see a full explanation of how the lemon law works. Then you're going to click on your state. You said you're a resident of Georgia?
EDNA: Georgia, yes, sir.
HOWARD: You'll click on Georgia and it'll take you through step by step sending the manufacturer a letter first by certified mail, telling them you want them to get this car fixed or you want them to buy it back and then step by step you'll proceed and maybe you'll be rid of that car before the 14th time you take it in to have it repaired.
KENNEDY: Oh, boy.
O'BRIEN: Edna, we wish you well on that one. That sounds awful. But that does happen every now and again. It's a good thing there's a law there to protect people. It really is, you know?
HOWARD: But the big thing is you sit on your rights, you forfeit them.
O'BRIEN: Right.
HOWARD: That's why very early on you want to start documenting and use your lemon law rights...
KENNEDY: Get proactive.
HOWARD: ... eight service tickets ago.
O'BRIEN: Edna, start writing some letters.
All right, unfortunately, we're out of time.
I've got to ask you a quick one before you get away. Why do you have two cell phones? He's got two cell phones in his pocket.
HOWARD: Oh, well, two cell phones, you know, this is a deal.
O'BRIEN: I mean that is, come on, that's...
HOWARD: See, you want to carry two cell phones.
O'BRIEN: Is that geek chic or what?
HOWARD: All right, no. The reason is the cell phone industry is dividing into three price tiers.
O'BRIEN: You can call yourself.
HOWARD: That's true. But the cell phone industry is dividing into local service, regional and national.
O'BRIEN: Right.
HOWARD: So I have one phone for local service that I can talk all I want for a very low rate. And then I have a second phone for when I travel where it's more precious to use the minutes. And it confuses people to know which phone to call, but it saves a lot of money for someone who travels.
O'BRIEN: All right.
HOWARD: It sounds...
(CROSSTALK)
KENNEDY: Well, hopefully you saved us a lot of money today.
O'BRIEN: Do you get confused about which one to use and which one you don't?
HOWARD: Yes, I do. I have to remember. Because this one, after nine o'clock at night, I can use local or wherever I am.
O'BRIEN: All right, Clark Howard, always a great pleasure to have you drop by.
HOWARD: Thank you.
O'BRIEN: Please come again.
HOWARD: Love to.
O'BRIEN: And I don't know that you can top the dollar suit, but anyway. You can try.
KENNEDY: We want you to come again, too.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired October 19, 2002 - 08:48 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KATHLEEN KENNEDY, CNN ANCHOR: Nice pictures, Howard.
CLARK HOWARD, CONSUMER ADVOCATE: How about that picture?
MILES O'BRIEN, CNN CORRESPONDENT: Wait a minute. Like you've got to be number one, a president, and number two, dead, to get that distinction. And there you were.
HOWARD: I've just raised money (UNINTELLIGIBLE).
KENNEDY: He might be if he knows it would save more money.
O'BRIEN: Not many people know much about the Howard administration but they balanced the budget. We do know that much. Anyway...
KENNEDY: You looked very surprised.
O'BRIEN: That's quite an honor.
All right, it's good to have you back.
HOWARD: Thank you.
O'BRIEN: And we begin, as where we always begin with you, give us the cost of your attire.
HOWARD: Oh, well, this is a special item right here because I was flying out of town to give a speech. I got to the place I was going out of town, opened my suitcase...
O'BRIEN: No suit.
HOWARD: My suit wasn't there.
O'BRIEN: Boy.
HOWARD: It was on the bed at home. So what did a smart shopper do?
O'BRIEN: A smart shopper went to the nearest clothing store and got a suit quickly.
KENNEDY: Go to Saks? No.
HOWARD: No, I went to Salvation Army and Goodwill and thrift stores. O'BRIEN: You did not?
HOWARD: I did.
O'BRIEN: You did not.
HOWARD: I did and this was one dollar at a Goodwill in...
O'BRIEN: It was a used suit?
HOWARD: That's right.
O'BRIEN: Yes. No kidding?
HOWARD: Yes. Was a dollar too much for it?
O'BRIEN: A dollar? Let me feel that. That's not bad. Yes, you know...
HOWARD: It's actually a very nice suit.
O'BRIEN: It's pretty nice.
HOWARD: You know, men's suits...
O'BRIEN: One dollar?
HOWARD: Men's suits are the coolest deal used because so many guys will buy a suit and they either don't wear it except on special occasions or, you know, as guys our weight will fluctuate so much and we'll buy a suit and we'll never be able to wear it.
O'BRIEN: Well, speak for yourself. But anyway, go ahead.
HOWARD: Your weight's always exactly what you want it to be.
KENNEDY: What I want to know is what your wife thinks about this suit.
HOWARD: Well, my wife thinks I'm a little kooky with this stuff.
KENNEDY: Right.
O'BRIEN: One dollar. You cannot beat that one.
HOWARD: It's pretty good.
O'BRIEN: But you know what? Who would know that it's used, right? And the shirt --
HOWARD: I just told you.
O'BRIEN: Yes, all right.
HOWARD: See, that's the bad part.
O'BRIEN: Well, but it's, you know, it actually is good for you. Anyway...
HOWARD: This shirt was actually cheaper than the last one I wore.
O'BRIEN: Really?
HOWARD: This one was $9.99.
O'BRIEN: $9.99.
HOWARD: Yes.
O'BRIEN: A few synthetic fibers, but that's the way you like it.
HOWARD: Sixty percent cotton.
O'BRIEN: All right...
HOWARD: Do you know there are new shirts out in the marketplace that are a hundred percent cotton that you do not have to iron?
O'BRIEN: Oh, my gosh, it's nirvana.
HOWARD: New technology, yes.
KENNEDY: That's all right.
HOWARD: Yes, yes.
KENNEDY: You like the idea of that. Do they come in kids' sizes?
HOWARD: They're too expensive right now for me. I have to wait for it to work its way down.
O'BRIEN: They're above 10 bucks. Forget about it.
HOWARD: No, they're about $34.
O'BRIEN: Oooh, ouch, ouch.
KENNEDY: Oh, boy.
HOWARD: No chance I'd spend that.
O'BRIEN: All right, you know, we probably should allow our viewers to participate in this little coffee klatch we've got going here.
KENNEDY: Yes, get some input from our viewers, yes.
O'BRIEN: A guy with a handle of witchwells@aol.com has this one for you, Clark. It is a good question. If interest rates are so low, why are credit cards now raising rates on all cards?
HOWARD: Well, actually what they're doing is they're slicing and dicing the market, because there are three types of credit card customers. There are the people who pay their balance in full every month, which is about 40 percent of customers. Then there are about 30 percent of customers who pay much more than the minimum each month. They're getting the best deals on interest rates. But that other 30 percent who are paying only the minimum, the credit card companies are putting a dagger right through your heart. They're raising interest rates, believe it or not, right now as high as 35 percent.
O'BRIEN: Oh, my goodness, gracious. Wow.
HOWARD: I want you to try to imagine paying 35 percent on your credit cards.
O'BRIEN: Wow.
KENNEDY: I can't believe 40 percent of the people pay them every month.
HOWARD: Isn't that neat?
KENNEDY: That's great.
HOWARD: Well, you know, that's because of all the reward cards. There are people who are using credit cards as just a payment system...
O'BRIEN: Yes, get the mileage.
HOWARD: ... to get mileage or get cash back.
O'BRIEN: Absolutely.
HOWARD: Cash back is better than miles, by the way.
O'BRIEN: It is? Really?
HOWARD: Yes.
O'BRIEN: All right. All right.
HOWARD: Sorry, I shouldn't say cash back, but...
KENNEDY: Miles.
HOWARD: But it is better because with cash back you're actually getting...
O'BRIEN: No offense taken.
HOWARD: Right. You're actually getting money to put in your pocket, where with miles you may not be able to redeem them because of how hard the airlines make it for you to redeem frequent flier miles.
O'BRIEN: And they're making it harder all the time.
HOWARD: Exactly. O'BRIEN: That's, we should do a whole segment on how the airlines treat their customers.
KENNEDY: We've got a caller from Georgia on the line.
O'BRIEN: Let's get a caller in.
KENNEDY: David?
DAVID: Yes?
KENNEDY: What's your question?
HOWARD: Good morning, David.
DAVID: Good morning, Clark. I love you. I listen to you locally all the time and you're great.
I have a question regarding 401(k)s and a process that I've just heard about called mapping. Are you familiar with it?
O'BRIEN: Mapping?
HOWARD: Mapping? Teach me.
DAVID: Well, what they do is if you have been in a fund and hung with a fund that's been losing for a long time, they then say well, this fund's not doing anything, we're getting rid of this fund and we're going to put you in the next closest fund we have to it.
O'BRIEN: Oh...
HOWARD: OK, yes.
O'BRIEN: Without, you have no choice in the matter? Is that it?
DAVID: Right.
HOWARD: Actually, a number of mutual fund companies are eliminating their dog funds right now and merging them with other funds. So I guess this is a similar kind of event. So how much have you lost in your 401(k)?
DAVID: Well, since April I've lost $10,000 out of $48,000.
O'BRIEN: Ouch. Ouch.
HOWARD: And, you know, it's been a really bad year for most of us in 401(k)s. That's just part of the drill right now with 401(k)s. The most important thing for you to do, though, is as long as you're diversified in that 401(k), is to stay in the game.
O'BRIEN: Do what I do, don't open the envelope, put it right in the drawer and forget about it.
KENNEDY: Oh, lord. O'BRIEN: All right, let's get another e-mail then we'll do a call. "What advice can you give us about debt management programs? We have some credit card debt due to job loss and have been looking into these programs as a last resort. We have been told, however, that this isn't viewed much better than bankruptcy in the eyes of lenders. What's the deal?" From Scott. Good question, Scott.
HOWARD: Yes, the deal for Scott is this, and, Scott, this is true for everybody. Right now on TV there's ad after ad after ad for these companies, just call us, one call does it all, we'll handle your debts, we'll negotiate with your creditors. Be very careful. Most of these companies are actually working to your detriment, not to your benefit. They're charging you huge fees that they don't disclose to you, or if they do, it's in the mice type of a contract, for negotiating with your creditors.
What I'd much rather you do is make one stop on the Web to nfcc.org. That's the National Foundation on Credit Counseling. That's the legitimate place for people to go for help with their debts. And you know what's interesting? About a third of the people who go there only need help with a budget. People go there thinking that it's way past too late, they need somebody to be their advocate...
O'BRIEN: And it's not as bad as they think?
KENNEDY: Yes, right.
HOWARD: Right. So about another third of people actually do need the help of negotiating a plan, and that plan will harm your credit for a while, being in a debt management plan.
O'BRIEN: But better than bankruptcy?
HOWARD: Better than bankruptcy because you're honoring your debts and it's less expensive than bankruptcy. Sop once again, the Web site for information and for referral is nfcc.org.
O'BRIEN: All right, nfcc.org. We'll try to get that up in a bit.
KENNEDY: Clark, we talked about car problems a little earlier and we have Edna from Georgia on the line.
O'BRIEN: Hello, Edna.
EDNA: Hello, Clark. Thank you.
HOWARD: Good morning, Edna.
EDNA: You're such a good person. I listen to you all the time.
HOWARD: Well, I'm glad that you do.
EDNA: Clark, I've got a problem. I bought this new car and I've carried it back to the company about 12 times to get it fixed. It seeps air through the windows.
O'BRIEN: Ouch. Ouch.
HOWARD: Twelve times?
EDNA: Twelve times. And they keep giving me the runaround.
HOWARD: Did you buy -- you said it was new.
EDNA: Yes, sir.
HOWARD: Was it new to you or a brand new car?
EDNA: It's a brand new car, yes.
HOWARD: All right. How many miles did it have on it when you first had the problem?
EDNA: Twenty-three miles.
O'BRIEN: Oh my goodness.
HOWARD: OK, how many service tickets do you have?
EDNA: I've already had it done 12 times...
HOWARD: No, but how many service -- you have 12 actual service tickets?
EDNA: Yes, sir.
HOWARD: Why haven't you lemon lawed this car?
EDNA: Pardon me?
HOWARD: You should use the lemon law. Are you familiar with the lemon law?
EDNA: No, sir, I ain't, Clark. I don't know anything to do.
HOWARD: OK, all right, with a new car in all the states you have a right to try to get the state to force the manufacturer to buy the car back. And the lemon law process is similar from state to state. You have to have a certain number of service tickets. Depending on the situation with the car, you have to have one to four service tickets, where you have 12. So the right thing to do is -- I'm going to direct her to the Web.
Are you Internet active, by the way? I can't hear her.
O'BRIEN: Edna?
EDNA: Yes, sir?
O'BRIEN: Do you use the Internet?
EDNA: Yes, sir.
O'BRIEN: Oh, good. Right. Good.
HOWARD: Great. I want you to go to autopedia.com. You go to autopedia.com, you're going to see a full explanation of how the lemon law works. Then you're going to click on your state. You said you're a resident of Georgia?
EDNA: Georgia, yes, sir.
HOWARD: You'll click on Georgia and it'll take you through step by step sending the manufacturer a letter first by certified mail, telling them you want them to get this car fixed or you want them to buy it back and then step by step you'll proceed and maybe you'll be rid of that car before the 14th time you take it in to have it repaired.
KENNEDY: Oh, boy.
O'BRIEN: Edna, we wish you well on that one. That sounds awful. But that does happen every now and again. It's a good thing there's a law there to protect people. It really is, you know?
HOWARD: But the big thing is you sit on your rights, you forfeit them.
O'BRIEN: Right.
HOWARD: That's why very early on you want to start documenting and use your lemon law rights...
KENNEDY: Get proactive.
HOWARD: ... eight service tickets ago.
O'BRIEN: Edna, start writing some letters.
All right, unfortunately, we're out of time.
I've got to ask you a quick one before you get away. Why do you have two cell phones? He's got two cell phones in his pocket.
HOWARD: Oh, well, two cell phones, you know, this is a deal.
O'BRIEN: I mean that is, come on, that's...
HOWARD: See, you want to carry two cell phones.
O'BRIEN: Is that geek chic or what?
HOWARD: All right, no. The reason is the cell phone industry is dividing into three price tiers.
O'BRIEN: You can call yourself.
HOWARD: That's true. But the cell phone industry is dividing into local service, regional and national.
O'BRIEN: Right.
HOWARD: So I have one phone for local service that I can talk all I want for a very low rate. And then I have a second phone for when I travel where it's more precious to use the minutes. And it confuses people to know which phone to call, but it saves a lot of money for someone who travels.
O'BRIEN: All right.
HOWARD: It sounds...
(CROSSTALK)
KENNEDY: Well, hopefully you saved us a lot of money today.
O'BRIEN: Do you get confused about which one to use and which one you don't?
HOWARD: Yes, I do. I have to remember. Because this one, after nine o'clock at night, I can use local or wherever I am.
O'BRIEN: All right, Clark Howard, always a great pleasure to have you drop by.
HOWARD: Thank you.
O'BRIEN: Please come again.
HOWARD: Love to.
O'BRIEN: And I don't know that you can top the dollar suit, but anyway. You can try.
KENNEDY: We want you to come again, too.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
