Holiday bills rolling in? Top goal for Canadians is repaying debt, CIBC poll suggests

The New Year is a time for resolutions on diet and exercise, but it’s also a time for taking a closer look at one’s finances after the Christmas season.

Paying down debt remains a top concern for Canadians in 2023, but with costs going up everywhere, it may be even more difficult this year.

As the holiday bills rolls in, many Canadians are facing a reckoning.

“You may have put a little bit extra on that credit card,” says CIBC’s VP of financial advice Carissa Lucreziano. “It’s a really good time to a look at that and take stock in that and also put a plan in place.”

Repaying debt is the number one financial goal for Canadians in 2023, according to CIBC’s annual financial priorities poll, which shows 18 per cent of respondents are focused on their debt.

“Something that is on many, many minds is paying down debt,” said Lucreziano.

“If the cost of living continues to be at the level that it is and continues to increase, that is going to put extra strain budgets and cash flow. That is one of the number one reasons Canadians say that they’ve accumulated debt in 2022 and will continue in 2023.”

Other top priorities for 2023 include keeping up with bills (17 per cent) and growing investments (14 per cent).

The bank says that cutting credit card debt is one of the best things you can do to improve your personal finances.

“That’s something you’re going to want to focus on paying down and paying down first, before you’re thinking about possibly saving for retirement or any other goal because, if you think about it, credit card interest rates could be up to 20 per cent.”

Licenced insolvency trustee Doyle Salewski Inc. helps clients tackle their debt. President Brian Doyle says getting control of debt is paramount.

“Paying down the debt and insulating yourself is probably the best thing you can do for your family,” he says.

Both Lucreziano and Doyle suggest setting a budget for yourself and your family.

“You have to analyze what’s important to you and your family,” says Doyle. “Where are you spending your money? Spend some time on that, and bring the other family members into the dialogue so they understand too, because sometimes they’re just not aware.”