(WGHP) — On Tuesday, the Federal Reserve could make a drastic move to cool inflation by increasing interest rates by .75 percent.

Americans haven’t seen a jump that large in one increase since 1994.

“This is painful, but it’s required to have good outcomes,” said Jennifer Windsor with Triad Financial Advisors.

Cooling down demand could mean more Americans feel the burn.

“The average consumer who is maybe carrying some credit card debt, carrying some student loan debt and looking to buy a house might get hit three times,” Windsor said.

As federal interest rates rise, interest rates on everything else follow, meaning it could be time to pay off debt more aggressively before things escalate.

“Some of those mortgages are variable and can go up. So at that point, you have to consider ‘do I want to try and pay this thing down or do I want to try and refinance to get a lower rate?” Windsor said.

With the uncertainty an interest rate hike brings to the stock market, now is not the time for risky investment decisions like buying cryptocurrency or reorganizing your retirement portfolio.

“If you have some extra savings you invest on the side, it might be a good time to be a little less aggressive with that money,” said Matthew Schaffer with the Department of Economics at UNCG.

Higher interest rates do have some positive effects with larger returns on saving money.

Schaffer tells FOX8 it could also have the potential to level out prices in a skyrocketing housing market.

Smaller spending changes in your day-to-day could help keep up with rising rates and inflation.

“The labor market is still really strong, and unemployment is historically low right now–under four percent–so if you’ve been considering changing jobs, especially with the hope of getting a raise, it’s still a really good time to try and do that and maybe lock in some higher income,” Schaffer said.

Experts tell FOX8 that if you develop a plan now for paying down debt and reining in spending, a potential recession shouldn’t hit as hard.

“I’ve been reminding my clients this phase we’re in right now is a lot like physical therapy: you have the surgery done. The surgery only gets you so far. If you don’t do physical therapy, you don’t get the right outcomes,” Windsor said.