The Clark Howard Podcast

Episode: 01.12.26 — A Plan For Credit Card Debt / Online Grocery Prices
Host: Clark Howard
Date: January 12, 2026

Episode Overview

In this episode, Clark Howard tackles the urgent problem of record-high consumer debt following the holiday season, offering listeners a straightforward plan to attack credit card balances and regain financial control. The second half dives into the increasingly popular practice of online grocery shopping, discussing whether it’s truly a money saver or a potential rip-off—particularly in light of recent pricing controversies with major delivery platforms. Throughout, Clark and his team take listener questions on credit card errors, home equity debt, investing, travel insurance, hidden import fees, and the power of financial generosity.

1. Credit Card Debt: The New High and a 3-Step Battle Plan

Main Discussion (00:00–16:47)

• Americans have hit a new record for credit card debt post-holidays

  • "We now in January have hit record levels of debt in the United States. Not a record to be thrilled about or proud of." — Clark (01:21)
  • Debt collapsed during early COVID due to fewer spending opportunities, but recent years of inflation and easy credit ("pay in four" plans) fueled a rebound.

• Where does debt come from?

  • About 20% find themselves in debt due to hardship—job loss, illness, or covering basics.
  • For most, it's due to "lifestyle creep" and the widespread ease of tapping and charging.

• Clark’s 3-Step Plan for Attacking Debt

  1. Face the Numbers: List every debt (who, how much, and interest rate).
     • “This is the hardest bridge for people to cross. Believe it or not. Harder than paying the debt back is facing the debt you have.” — Clark (03:38)
  2. Stop Adding to the Fire: No more new credit card charges until you’re out of the woods.
     • “If all you can do is service the debt and it’s not so you can put food on the table, it’s things you just buy, you just spend on. If you stop using the credit, that is the second key thing to you, getting things under control.” — Clark (05:22)
  3. Triage Payments: Minimum on all debts except the highest interest one—prioritize extra payments there.
     • Consider multiple payments each month to cut daily interest accrual.
     • “You will get out of debt in one fourth the time than if you play it their way at the bank whose job it is to keep you on the hook.” — Clark (07:01)
  • For those feeling hopeless, seek legitimate credit counselors at Clark.com.

2. Cautionary Listener Tales on Credit Cards & Debt

Dan in Ohio’s Discover Card Interest Glitch

• Dan, a perfect payer, was wrongly charged interest after a Discover/Capital One merger.
• Clark: “Anytime there’s a bank marriage, it turns out to have hiccups… Especially important to check those statements just like you did, Dan.” (09:05)
• Advice: Always check statements carefully after bank mergers.

3. Real-Life Financial Scenarios

Desi in Oregon: What To Do With a $20k Windfall

(10:02–12:53)

• Paid off her house, has a fixed-rate home equity loan (6.25%), emergency fund at $3,000.
• Should she: a) Boost emergency fund first, or b) Pay off loan, or c) Pull more from IRA?
• Clark’s Recommendation: Split the $20k—half for the emergency fund (target $10K), half as extra payment towards the home equity loan.
  • “Even though you’re losing some in interest every month… I like that 50/50 idea.” — Clark (12:38)

John in Oregon: The ACATS Lock on Brokerage Accounts

(12:53–16:47)

• Clark explains the ACATS (Automated Customer Account Transfer Service) lock: an anti-fraud tool that blocks unauthorized brokerage transfers.
• Fidelity: Easy lock feature.
• Vanguard & Schwab: No or manual process; industry needs to catch up.
• More 401(k) providers now participate in ACATS, but consumer protections vary.
• “This needs to be standard industry procedure… to protect your money.” — Clark (15:23)

4. Online Grocery Shopping: Savings or Trap?

Instacart, Amazon, Walmart Plus Analysis (17:37–24:16)

• Instacart’s Dynamic Pricing Debacle:

  • Used AI to charge less price-sensitive users more (up to 20% for identical orders), then backtracked after negative press.
  • “Instacart was charging different people different prices for the same grocery order… It’s something that’s still unclear how this is all going to play out.” — Clark (18:11)

• Amazon and Walmart Plus: The Competitive Edge

  • Walmart and Amazon Prime members now get in-store (non-marked up) pricing for grocery delivery—no extra "convenience tax."
  • Double benefit: No impulse buys and no price gouging.
  • “If you order as a Walmart Plus member, you order as an Amazon Prime member… you have the convenience; you’re not paying more for the items and you don’t do the impulse purchasing.” — Clark (20:59)

• Caveat:

  • The big complaint is often about produce quality (Walmart Plus especially).
  • Krista (producer): “It does save me money because I don’t do the impulse buys that I do when I go to the grocery store.” (22:53)
  • No clear winner yet on Amazon vs Walmart Plus in terms of delivered grocery prices; Clark encourages comparison shopping.

5. Quick Listener Q&A Highlights

(24:16–29:11)

• Travel Insurance and Strikes: Recent ski resort closures (Telluride, Massif) left travelers out of luck; standard travel insurance does not cover labor strikes.

  • “People said their trip insurance didn’t cover the strike… I’m not aware of any travel insurance that covers work actions.” — Clark (24:37)

• Hidden Import Fees on Online Shopping:

  • Elaine paid a surprise UPS tariff (on top of shipping) for a Canadian Etsy order.
  • “So source of origin, if you can figure it out has become so important now because the tariffs against a number of countries are extremely high.” — Clark (26:13)

• Financial Generosity & The Power of Saving:

  • Danielle in Oklahoma shared about helping a friend pay for emergency medication and the power of having savings.
  • “Over the years I’ve been incredibly blessed with making my way up the ladder… Saving money is still a hobby of mine… I can help my friend.” — Danielle (read by Team Clark) (26:56)
  • Clark: “You doing that made it possible for you to be the generous soul you have been for your friend and their child in hospice. Thank you for your inspiration.” (29:05)

6. Notable Quotes & Memorable Moments

• Facing Debt:
  • “Harder than paying the debt back is facing the debt you have.” — Clark (03:38)
• On Paying Down Debt Faster:
  • “Nobody ever got rich paying Visa or MasterCard 25%. I want money in your pocket.” — Clark (06:53)
• On Financial Kindness:
  • “Your kindness is a warm, wonderful example to all of us.” — Clark (28:00)
• On Systemic Money Habits:
  • “Our spending rises directly in tandem with the rise in our income… You managed to fight that.” — Clark (29:11)

7. Summary: Actionable Takeaways

• For Debt:

  • List, stop using cards, and focus on paying off the highest interest debt, making multiple monthly payments if possible.

• For Online Groceries:

  • Be wary of dynamic pricing, compare delivery services, and watch for quality on perishables.

• General Financial Wisdom:

  • Always check for errors on statements, be aware of hidden fees on international orders, consider financial security as a way to help others, and advocate for better protections in financial systems (like the ACATS lock).

For more advice, resources, and free newsletters, visit Clark.com and ClarkDeals.com.