Repaying Debt Main Financial Priority For Canadians in 2023

Repaying debt is the number one goal for Canadians in 2023, while inflation, rising interest rates, and recessionary fears top the list of financial concerns according to CIBC’s annual Financial Priorities poll.

"The current economic environment has, understandably, prompted Canadians to re-assess their financial priorities for 2023," said Carissa Lucreziano, Vice-President of CIBC Financial and Investment Advice. 

"When things feel uncertain, it's important for people to focus on what is in their sphere of control. A financial professional can help Canadians plan for the unexpected and feel confident when faced with challenges in the year ahead."

Canadian’s sentiment toward finances has weakened in 2022. Over half of Canadians have indicated they need to improve how they handle their finances and one in four have stated they have taken on more debt in the last year.

Results

Top Priorities

• Repaying Debt - 18%

• Keeping Up With Bills - 17%

• Growing Investments - 14%

Secondary Priorities

• Saving As Much As Possible - 25%

• Avoiding More Debt - 24%

• Saving For a Vacation - 21%

• Reduce Discretionary Spending - 18%

Reasoning For Taking On More Debt

• Increased Cost of Living - 47%

• Day-to-Day Expenses Beyond Monthly Income - 34%

• Unexpected Financial Emergencies - 16%

• Higher Cost of Borrowing - 16%

• Home Repairs - 14%

While it's good to have a financial plan, 68% of Canadians believe the uncertainty of the economic and financial environment makes planning even more difficult.

To top it off, 40% are currently concerned about job security given the economic environment of rising interest rates.