Canadians are prioritizing this key money move in 2025 and are confident they will reach this milestone — are you doing the same?

Canadians’ 2025 financial priorities

Another 64% of Canadians maintain a positive outlook on their current financial situation, with only 28% having taken on more debt in the past 12 months.

The poll also found that inflation/rising costs of household goods (66%) and high interest rates (28%) remain the top financial concerns for Canadians.

While 65% of Canadians are worried about the possibility of a recession, over half feel prepared to weather an unexpected financial event or hardship (59%) and most feel their financial situation is secure enough to withstand a recession (53%).

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Additional findings

The top reasons for taking on more debt include increased cost of living (44%), day-to-day expenses beyond monthly income (29%), unexpected financial emergencies (21%), new vehicle (16%) and the loss of income (14%).

Among those currently employed, 54% are concerned about their job security given the present economic environment.

Separately, 24% say advice to help manage the cost of living would help them feel more prepared for unexpected financial hardships.

Ways to pay down your debt faster

While paying down your debt can seem daunting, even anxiety-inducing, there are ways to get around this significant hurdle, smartly.

First, it's important to find the best approach to tackling whatever sum of debt you have, whether that's through a something like the debt snowball or avalanche method.

The debt snowball method involves paying off the smallest debt to the largest, and was popularized by Dave Ramsey as a way to set you up for quick wins by tackling the smallest debt first. The idea is that you’ll gain confidence and momentum by succeeding in knocking out those smaller debts, which allows you to tackle your bigger debts with enthusiasm.

The debt avalanche method, on the other hand, reverses the order, starting with paying down your sum with the largest interest rate first.

Which method you use to tackle your debts ultimately depends on your personality and preferences — if numbers matter the most to you, and you want to be sure you are maximizing every dollar you allocate toward your debt, pick the avalanche method. However, if you're privvy to paying off and closing your smaller accounts, the snowball method might suit you well.

Try debt consolidation

If you have high-interest debt like credit card debt, consider a promotional balance transfer offer to reduce your interest rate to as close to 0% as possible. Make sure you only transfer an amount that you are confident you can pay off during that promotional period, as interest rates on your newly consolidated debts will increase after the promotional period ends.

Another approach is to consolidate debts into a large, low-interest loan — but just be mindful to not let history repeat itself and avoid running up any new debt.

Try a budgeting app

If you need to find a way to allocate funds to debt payment but also afford everyday necessities like groceries and rent, a budgeting app can help divvy up your money in a more meaningul manner.

Thankfully, there are plenty of options on the market to help make the most of your finances — check them out here.

Survey methodology

The findings are from an Ipsos poll conducted between Nov. 27 and Dec. 2, 2024 on behalf of CIBC. For this survey, a sample of 1,500 Canadians aged 18 and over were interviewed online, with participants sourced from the Ipsos panel.