In the news release, "Paying down debt remains No. 1 priority
for Canadians heading into 2017: CIBC Poll", disseminated today at
04:00e, please note that the dates in the key poll findings table
columns have been corrected to read 2017 and 2016, not 2016 and
2015. Corrected copy follows:
Paying down debt remains No. 1 priority for Canadians heading into
2017: CIBC Poll
While many Canadians are tackling debt head-on, few actually
seek advice
TORONTO, Dec. 29, 2016 /CNW/ - A new poll from CIBC
(TSX:CM) (NYSE: CM CIBC) finds that paying down debt is once again
the top financial priority for Canadians in 2017, the seventh
straight year that debt concerns have headlined the annual survey.
Coming in at nearly 30 per cent, prioritizing debt repayment
is at its highest level since 2010.
"With debt loads continuing to climb, it's encouraging that
repaying debt remains a top priority for Canadians," says
Scott Wambolt, Senior Vice
President, Retail and Business Banking, CIBC. "However, with some
Canadians saying they are taking on debt just to cover day-to-day
expenses and too few actually seeking advice on how to build a
repayment plan, it's clear there is a gap when it comes to taking
action on debt
reduction."
Key poll highlights include:
- 28 per cent of Canadians say paying down debt is their
top financial priority for 2017.
- Of those prioritizing debt repayment, the vast majority (76
per cent) are most concerned with paying their credit card and
line of credit debts. This is consistent with findings from the
recent CIBC Holiday Spending poll.
- Encouragingly, 70 per cent of Canadians say they did not
take on any new debt in the past 12 months, while 28 per
cent did.
- Among those incurring new debt, almost a third (32 per
cent) cited managing day-to-day expenses beyond their monthly
income as the primary reason for debt accumulation.
According to the latest data from Statistics Canada, household
debt, including mortgages, rose to a record 166.9 per cent of
after-tax income in the third quarter, with debt loads rising
faster than disposable income.
Few will take sufficient steps to reduce debt
The findings also revealed that just over half of Canadians
surveyed (52 per cent) plan to reduce their spending on
non-essential items to meet their 2017 financial goals. Yet, only a
quarter (26 per cent) will actually set a household
budget, and fewer still (12 per cent) will meet with a
financial advisor to get professional advice on how to reduce their
debt and meet their financial goals.
"It makes it difficult to meet your 2017 financial goals if you
aren't taking advantage of advice and tools that can help, which
partly explains why debt repayment is consistently the top
financial priority for Canadians," said Mr. Wambolt. "If you want
to get in shape, you go to a fitness coach or trainer. Quitting
smoking? You speak to your doctor. It's the same if you want to
meet your financial goals - you go to a financial advisor. Working
with an expert on a clear action plan can help you make real
progress on your goals."
While debt can be concerning for many, Mr. Wambolt advises to
have a balanced approach to debt reduction and savings. "This is
where advice can make a real difference, since there is no
one-size-fits-all model," he adds. "It's important to have a
conversation with your advisor early on so you can work together on
a unique plan that fits your needs and helps you reach your goals
in an achievable timeframe."
Debt-Reduction Tips:
- Talk to an Advisor - put realistic steps in place to
reduce interest costs and accelerate debt repayment. Pay off your
most expensive debts first and/or consolidate your consumer debts
into one loan with one payment at a lower interest rate.
- Create a spending plan and recognize that your finances
are all connected - progress on one financial goal can open up
opportunities to improve others.
- Focus on longer term – controlling spending and
eliminating high-interest debt is vital and will help you build
your retirement savings. Even small contributions today can make it
easier to grow your wealth or investments.
- Stick to the plan - If you fall off track, get back to
your plan as soon as possible and keep making progress towards your
goal.
KEY POLL FINDINGS:
Top financial goal for Canadians in 2017:
|
2017
|
2016
|
Paying
down/eliminating
debt
|
28%
|
26%
|
Keeping up
with
bills/getting
by
|
16%
|
18%
|
Growing my
wealth/investments
|
11%
|
7%*
|
I don't have/am
not
making financial
goals this year
|
10%
|
11%
|
Saving for
a
vacation/travel
|
8%
|
8%
|
Saving for
retirement
|
6%
|
8%
|
Buying/saving for a
house
or renovating my
current
house
|
6%
|
6%
|
Buying/saving for a
car or
another large purchase
|
4%
|
4%
|
Establishing/building
an
emergency
fund
|
3%
|
4%
|
Other
|
3%
|
3%
|
I don't
know
|
3%
|
3%
|
Saving for
my/my
children's
education
|
3%
|
2%
|
*2015 poll categorized as "building savings."
From December 5th to December 6th
2016 an online survey was conducted among 1,507 randomly
selected Canadian adults who are Angus Reid Forum panelists. The
margin of error—which measures sampling variability—is +/- 2.5%, 19
times out of 20. The results have been statistically weighted
according to education, age, gender and region (and in Quebec, language) Census data to ensure a
sample representative of the entire adult population of
Canada. Discrepancies in or
between totals are due to rounding.
About CIBC
CIBC is a leading Canadian-based global financial institution
with 11 million personal banking and business clients. Through our
three major business units - Retail and Business Banking, Wealth
Management and Capital Markets - CIBC offers a full range of
products and services through its comprehensive electronic banking
network, branches and offices across Canada with offices
in the United States and around the world. Ongoing news
releases and more information about CIBC can be found
at www.cibc.com/ca/media-centre/ or by following on
LinkedIn (www.linkedin.com/company/cibc), Twitter @CIBC,
Facebook (www.facebook.com/CIBC) and Instagram @CIBCNow.
SOURCE CIBC - Consumer Research and Advice