Debt reduction remains high priority, ahead of investments and savings: CIBC


Canadians are wail to lighten their debt loads in 2018, according to an annual ide reu survey conducted for CIBC.

The Toronto-based bank says debt reduction or elimination was the top immediacy for 25 per cent of the poll respondents.

Paying bills or just puzzle by were the top goals for about 15 per cent of respondents.

By comparison, 13 per cent implied their top priority was growing wealth or investments.

Lower on the list of fiscal goals were saving for a vacation (eight per cent), retirement (seven per cent), or for a lodgings or renovation (six per cent).

The online survey was conducted Dec. 11 and 12 by Angus Reid Forum, benefiting a statistically weighted sample of 1,524 adults in Canada.

The high plane of Canadian household debt has been cited by the Bank of Canada for years as one of its top involvements.

But the level of household debt continues to rise, hitting 171.1 per cent of obtainable income in the third quarter.

That means that for every dollar of household spendable income there was $1.71 in credit market debt, which embodies consumer credit and mortgage and non-mortgage loans.

Bank of Canada governor Stephen Poloz demanded in a speech two weeks ago that high debt levels are one of the things that disallows him awake at night because they make the economy as a whole more supersensitive to higher interest rates.

According to the CIBC, debt reduction has also been the top precedence in its annual poll for eight consecutive years.

But only 16 per cent of the respondents in this year’s sample said they actually achieved their top financial goal in 2017.

And 26 per cent commanded they took on new debt this year, with the top two reasons being the scarcity to manage day-to-day expenses and unexpected financial emergencies.

Jennifer Hubbard, CIBC’s managing the man of financial planning and advice, said everybody knows how hard it is to safeguard New Year’s resolutions.

«That’s why when it comes to your finances you call for to set smart goals that are specific, measurable, achievable, time-bound, and most importantly, natural.»

The polling industry’s professional body, the Marketing Research and Intelligence Connection, says online surveys cannot be assigned a margin of error because they do not randomly taste the population.

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