As America inches closer to the dreaded "fiscal cliff", financial advisors are preparing their consumers for what could happen if we take the plunge.

Higher tax payments could force some households to rack up more money on their credit card balances. Falling off the fiscal cliff may also mean banks will tighten their lending and make it harder for you to get approved for credit.

"As banks make less profit, they'll try and make up for that lack of profit and revenue in other ways. So, we could see higher interest rates, as well as maybe some slight cutbacks in the introductory offers that issuers give when you sign up for a brand new credit card," said Bill Hardekopf.

The government's possible solution to avoid automatic spending cuts could result in a drop of 401k contributions. It's estimated that will affect as many as 64 percent of middle class Americans. That would make it harder for them to save up for retirement. Financial advisors said one way to avoid some of these potential consequences is to get rid of debt now.