The Clark Howard Podcast 08.04.25 Subscriptions: A Clark Smart Assignment / Tax Update for freelancers & Payment Apps
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Aug 4, 2025 Subscription services often trap consumers with tricky cancellation processes, making it vital to tread carefully before signing up. The discussion includes IRS reporting changes for payment apps like Venmo, shedding light on what could trigger a 1099 for small businesses and freelancers. Listeners receive practical strategies for managing subscriptions and budgeting, emphasizing the importance of cash usage. In a personal finance masterclass, insights on improving credit scores and smart spending habits are also shared.
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Subscription Cancellation Barriers
- Many subscription services make it easy to sign up but very hard to cancel, hurting consumers.
- Legal action blocked required "click-to-cancel," letting companies keep complicated cancellation processes.
Manage Spending With Cash or Prepaid Cards
- Use cash envelopes to control spending by allocating fixed cash amounts to each person.
- If cash isn’t an option, use separate prepaid debit cards with no overdraft to limit spending.
Improve Credit with Monitoring Tools
- Keep credit cards open with no balance to maintain good credit score.
- Use tools like Credit Karma to monitor and get personalized tips to improve your credit score.