BENTONVILLE, Ark. (KNWA/KFTA) — Living could become even more expensive with the Federal Reserve’s latest interest rate hike.

The Fed raised rates by 0.75 percent Wednesday, the highest since 1994. Credit Counselor, Mark Jones, with Credit Counseling of Arkansas said the interest rate hike is a necessary evil to fight inflation.

“A short term pain to hopefully bring about a long term gain and cool down the inflation that we’re experiencing,” Jones said.

Jones said the cost of borrowing for those with variable interest rates, such as with credit cards, car loans and mortgages will be on the rise.

“Anybody with debt that is a variable rate, and that, for the most part includes credit cards,” Jones said. “They can change their rates and any of your debt outstanding can now suddenly cost you a lot more.”

Jones said you’ll want to start paying off debt now because rates are expected to continue to rise. If you aren’t financially able to start paying them off, Jones said you’ll want to find other ways to save.

“Cutting out the non essential expenses, raising the thermostat a little bit in the summer or the winter, you know, lowering it a little bit, living a little bit less comfortable,” Jones said.

Jones said the longer you avoid paying your debt, the more it will end up costing you.

Credit Counseling of Arkansas offers free financial help. You can learn about its services here.