What the Federal Reserve interest rate hike means for you

DAYTON — Interest rates are going up, which means you'll be paying more for credit card balances, auto loans and mortgages.

The Federal Reserve upped the benchmark interest rate a quarter of a percentage point and signaled there would be two more increases by the end of the year.

"I don't think this is really one of those things where you really need to panic because it's gradually increasing in small amounts," said Graceworks certified housing and credit counselor Lisa Roberts.

But there are changes consumers can make to lessen the blow.

Roberts said now is the time to refinance an adjustable rate mortgage into a fixed rate and stop swiping the credit card.

"You don't want to go and run up a lot of credit card debt because that means an increase in balance, an increase in monthly payments, which means less is going toward the principal," said Roberts.

The good news? Savings and money market account holders will see an increase in interest earned, said Roberts.

Carolyn Wright of Dayton said the interest rate hikes are a bad move.

"It's not good for the community, it's not good for the little people and most of us these days are little people. We can't afford high interest rates. It's really criminal," Wright said.

The Fed's plan to raise rates further this year is part of an ongoing effort to keep inflation in check and employment steady, according to analysts.