'Prioritizing debt reduction' becomes mainstream in 2025: a new financial trend for Canadians
With the arrival of 2025, Canadians' financial priorities have undergone significant changes: repaying debts has become the primary goal for many families. According to the latest survey by the Canadian Imperial Commercial Bank (CIBC), nearly one-fifth of Canadians (18%) consider debt reduction as their primary financial goal for the new year, highlighting the increasing caution in financial management amid growing economic pressures.
The reasons behind debt reduction
Economic uncertainty, rising living costs, and rising interest rates are the main factors leading to this trend. In recent years, with the expansion of consumer credit and rising housing costs, Canadians' debt levels have remained high. This situation forces many families to prioritize reducing their debt burden in order to improve their financial health.
Other financial objectives
The survey also shows that in addition to debt reduction, Canadians are also focusing on savings and investment goals. For example, 15% of people plan to increase their savings, while another 13% hope to save more funds for retirement. This indicates that even while focusing on debt reduction, Canadians are still actively planning for the future.
Expert advice
Financial experts suggest that the most important way to reduce debt is to set clear goals, have a reasonable budget, and control unnecessary expenditures. In addition, regularly consulting with financial advisors can also help optimize debt management strategies.
As an important signal for Canadians entering the new year, this trend demonstrates rational decision-making in a complex economic environment.
Source link:
https://financialpost.com/personal-finance/debt/paying-down-debt-top-financial-priority-canadians-2025-cibc-poll