If your New Year’s resolution for 2020 is to try and get out from under some of your debt, you’re not alone.
According to a recent survey, 71 per cent of respondents said they refrained from borrowing money in 2019 in order to get out of debt sooner; this is the 10th year in a row this has been the number one financial goal for Canadians.
The survey, conducted by CIBC, also found that 71 per cent of Canadians are concerned about the rising cost of household goods.
“Whether it’s daily household items or unexpected events, expenses can fluctuate for reasons that are often outside of our control. The best way to buffer against uncertainties is to have a financial plan,” Jamie Golombek, Managing Director for CIBC Financial Planning and Advice, said in a news release.
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“A financial expert can help prioritize your needs and prepare for potential economic changes to keep you on track to make your ambitions a reality,” he continued.
Additionally, 78 per cent of respondents said it was better to pay off debt rather than build savings.
However, 33 per cent said they are worried they are missing out on building a nest egg for the future in order to pay off their debt.
“Debt repayment doesn’t need to be worrisome; it needs to be managed. But, it shouldn’t come at the expense of savings. A strong financial plan incorporates debt management strategies, savings for financial goals, and a balanced portfolio with investments designed to make money in all market conditions,” Golombek added.
Further, according to the survey’s findings, fewer Canadians are feeling optimistic about their financial situation going into the new year–only 32 per cent of people are feeling good about their finances going into the new year compared to 41 per cent last year.