With daily expenses rising, Canadians are sometimes forced to take on more debt in 2023 and paying it off has become the financial priority for next year, according to a CIBC survey.
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Thus, 13% of Canadians surveyed indicated making this their priority for 2024. Nearly 13% also have a goal to save as much as possible and 12% to pay their bills.
An increase in the cost of living tops the top reasons respondents took on more debt (46%), followed by daily expenses higher than monthly income (38%), unexpected financial emergencies (17%), and higher costs of living. Borrowing costs (14%) and loss of income (14%).
“Given the pressures on household budgets due to rising costs, it is not surprising that debt repayment will be a top priority for Canadians in the new year,” acknowledged Carissa Lucreziano, vice-president, financial planning and advisory at CIBC Bank.
Among Canadians' other financial concerns for the coming year, we also find inflation (61%) and rising interest rates (28%).
However, 64% of respondents feel financially prepared to face the unexpected in 2024, and 60% consider their financial situation to be sufficiently solid in the event of a recession.
The poll was conducted by Maru Public Opinion among 1,511 Canadian adults from November 7 to 8, 2023.
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