CIBC poll shows Canadians will focus on paying off debts in 2023

According to the latest survey by CIBC, repaying debt is the most popular financial goal for Canadians for the next year, as inflation, high interest rates and concerns over a possible recession are still there.

The report shows that 18% of respondents say repaying debt is their main one goal for 2023. Another 17% plan to focus on paying their bills on time.

Meanwhile, 14% consider increasing investments to be their top goal for the year. Secondary goals include saving money, not increasing debts and cutting discretionary spending.

For more than half of Canadians (65%), inflation is their main financial concern, with growing interest rates (30%) and fear of a recession (24%) following.

Carissa Lucreziano, vice-president of CIBC Financial and Investment Advice, says, as a rule, people tend to focus on what they can control during economic uncertainties.

“Today’s economic environment has definitely forced Canadians to review their financial priorities for 2023,” – she noted.

Only over half of the survey respondents said they need to manage their financial situations better next year, while one in four people admitted they have increased their debts during the previous 12 months because of the higher cost of living and expenses exceeding their monthly income.

The poll shows that 40% of Canadians worry about job security amid today’s uncertain economic conditions, and 68% say that uncertainty makes it too difficult to make any financial plans.

However, in spite of concerns about personal finances and the unstable economic situation, 62% of respondents feel financially ready for the unexpected, and 59% are sure their financial situation will withstand a recession – a scenario that most of them (74%) consider the top point of concern.