Inflation and high rates are 'dangerous' for consumers.

By The Exchange Team

After several years of historically low interest rates, borrowing money has unexpectedly become significantly more expensive.

The Fed has raised its benchmark short-term rate 3 percentage points since March to control inflation, including this week.

“Interest rates are going up at the fastest pace that any of us have seen in our adult lives,” said Greg McBride, CFA at Bankrate.com.

"Credit card rates are the highest since 1995, mortgage rates since 2008, and auto loan rates since 2012"

Combination of Higher rates and inflation have impacted consumers hard, he said. August's CPI jumped 8.3% year-over-year.

Higher prices are driving more individuals to rely on credit just as "interest rates are growing at the quickest pace in decades"

Tomas Philipson, a University of Chicago economist, advises consumers to "cut back on discretionary expenditure"