At this time of year we hear a lot about new year’s resolutions, personal and business goals for the coming year and so on. It turns out on the personal front paying off debt ranks right up there for the average Canadian.
CIBC does a poll on this topic each year and paying off debt is generally near the top of the list as people begin to rethink priorities for a new calendar year.
2023 is no different. It ranks number one heading into this year as rapidly rising interest rates have turned debt repayment from something you deal with to something you have to deal with.
The fact that paying off debt is now priority one is no surprise given the three primary concerns identified by the survey: rising interest rates, inflation and a possible recession. All of those are intertwined and, while the average person can not prevent a recession or ratchet back interest rates, they can mitigate the pain by reducing interest charges by lowering their debt levels.
