Canadians to focus on debt reduction in 2013: survey

When it comes to personal finance, tackling personal debt is the New Year’s resolution for most Canadians according to a new survey.

The poll, conducted by Harris/Decima for CIBC, found 17 per cent of Canadians said debt reduction was their main priority for 2013. The survey was conducted from Oct. 24-Nov. 4 and has a margin of error of plus or minus 2.2 per cent, 19 times out of 20.

This is the third straight year in a row debt reduction has topped the survey’s list of financial priorities.

“Having been named the top priority three years in a row, there is an opportunity for more Canadians to turn awareness of debt management into action and outline some clear steps towards paying down their debt in 2013,” Christina Kramer, CIBC’s executive vice-president of retail distribution and channel strategy, said in a release Wednesday.

Statistics Canada says the household debt to income ratio rose to a record high of 164.6 per cent in the third quarter of 2012.

Saving money came in second with 10 per cent of those asked saying it would be their focus in the new year.

Canadians also said managing day-to-day budgets and planning for their retirement were top priorities.

The amount of people focused on retirement planning has dropped over the last two years from 13 per cent in 2011 to only seven per cent in 2013 – including those in the 45-64 age category, where it fell from 24 per cent to 12 per cent.

“While it is important to address immediate financial needs such as debt reduction, it is equally important to keep long term goals such as retirement in sight,” said Kramer. “Even small contributions today can make it easier in future years to reach your retirement savings goals.”

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