Debt Repayment Tops Canadians’ Financial Priorities for 2025

A recent survey by the Canadian Imperial Bank of Commerce (CIBC) has revealed that reducing or eliminating debt is the foremost financial goal for Canadians in 2025.

CIBC’s annual Financial Priorities poll indicates that 17% of respondents are prioritizing debt repayment, followed closely by 16% aiming to keep up with bill payments.

The survey highlights that inflation and rising household costs remain significant financial concerns for 66% of Canadians. Additionally, 28% are apprehensive about high interest rates, which continue to impact personal finances.

Despite these challenges, 65% express worry about a potential recession. However, over half (59%) feel prepared to handle unexpected financial hardships, and 53% believe their financial situation is secure enough to withstand a recession.

Carissa Lucreziano, Vice-President of CIBC Financial Planning and Advice, notes that financial priorities are influenced by both personal ambitions and the broader economic environment. She observes that Canadians are adapting by adopting new strategies, such as creating budgets and reducing spending, to stay on track.

Lucreziano emphasizes that while prioritizing savings amid rising costs is challenging, seeking guidance from a financial advisor can provide tailored advice to help achieve financial goals.

Despite economic uncertainties, Canadians maintain a positive outlook for the upcoming year. The survey reveals that 76% are confident in achieving their financial goals in 2025. Additionally, 64% have a positive view of their current financial situation, with only 28% having taken on more debt in the past 12 months.