Millions of Canadians Focus on Debt Reduction as Financial Concerns Loom in 2025
As the calendar turns to 2025, millions of Canadians are taking a hard look at their finances, grappling with the burden of holiday borrowing and the rising cost of living. While the start of a new year often inspires resolutions and renewed focus on priorities, a recent survey conducted by CIBC highlights the financial challenges and aspirations of Canadians heading into the year.
The CIBC Financial Priorities poll, which surveyed 1,500 Canadian adults, revealed that paying down debt is the top financial goal for 2025. This is closely followed by the need to stay on top of monthly bill payments. Many respondents cited borrowing for everyday expenses, the impact of inflation, and financial emergencies as key drivers of their increased debt levels. Other contributing factors included purchasing a new vehicle and unexpected income loss.
Concerns Amid Economic Uncertainty
The survey comes at a time when economic uncertainty continues to weigh heavily on Canadians’ minds. A significant 65% of respondents expressed concerns about inflation and the rising cost of living, while 28% remain worried about the impact of high interest rates. Moreover, nearly two-thirds of those surveyed fear the possibility of a recession, although over half believe their finances are resilient enough to withstand economic turbulence or unexpected events.
Adding to the financial anxiety, more than half of respondents expressed concerns about job security given the current economic environment. Around 24% of Canadians acknowledged they would benefit from professional financial advice to better prepare for potential hardships.
Adapting to Financial Pressures
Despite these challenges, many Canadians are adapting their financial strategies to navigate the tough times. According to Carissa Lucreziano, Vice-President of CIBC Financial Planning and Advice, Canadians are increasingly turning to tactics like creating detailed budgets and cutting back on discretionary spending to stay on track with their financial goals.
"Financial priorities are shaped both by ambitions and by the economic environment – and we're seeing Canadians adapt to the current environment by learning new strategies," Lucreziano said. "Prioritizing savings when costs are on the rise is challenging, but gaining insight from an advisor can empower Canadians with tailored, personalized advice and solutions to help them reach their financial goals."
Looking Ahead
As Canadians aim to reduce their debt and manage rising costs, many are likely to face tough decisions about their spending habits and financial planning. The survey results underscore the importance of proactive measures, such as seeking advice from financial professionals, to navigate uncertain times and secure a more stable financial future.
With the dual pressures of debt and a volatile economy, Canadians appear determined to tackle their challenges head-on, focusing on pragmatic approaches to achieve their financial aspirations in 2025.
