3 surprising mistakes people make that increase their debt

Financial expert Nicole Lapin shares 3 common mistakes that can increase your debt without even realizing it.

Transcript

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[MUSIC PLAYING] I'm Nicole Lapin, your financial expert, with some tips on how you can make the most of your money.

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Could you be increasing your debt without realizing it? The answer, unfortunately, is yes. There are a lot of little ways to add to your overall debt

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load without continuing to put things on a credit card, for instance, having no emergency fund. If you're putting all your extra cash

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toward paying down your debt and not setting anything aside for a rainy day, you'll be forced to pay unexpected expenses with credit.

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Try to avoid that scenario by creating and contributing to an emergency fund. Cosigning a loan.

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Did you know that if you cosign a loan, you are actually liable for the entire balance of that loan,

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and you could be stuck making payments if that loan holder defaults. Protect yourself, and avoid doing this at all costs.

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Too many hard inquiries into your credit score. If you've ever tried to buy a cell phone or put a rental car, for example, on your debit card,

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odds are that you've subjected yourself to a hard inquiry into your credit. These seemingly innocent actions can negatively

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impact your credit and also affect your interest rates. So be super cautious in these scenarios where your credit is checked and make

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sure it doesn't happen too often. How fit are your finances? Take the free money fit assessment at sharecare.com for a personalized