Transcript: Paying down debt top financial priority for Canadians in 2021

[Soft music playing.]

[CIBC logo. Paying down debt top financial priority for Canadians in 2021.]

[Carissa talking to the camera in front of a grey background.]

[Carissa Lucreziano, Vice President, Financial and Investment Advice.]

For the eleventh straight year, Canadians say paying down debt remains their top financial priority for 2021. Followed by: keeping up with expenses, getting by and growing investments, according to a new CIBC survey.

[CIBC logo. COVID-19 continues to shake financial confidence.]

[Circle graph indicating 43%. Circle graph indicating 25%.]

Nearly 43% of Canadians say their finances have been negatively affected by the pandemic and only a quarter of Canadians believe that their financial situation will improve anytime soon.

[Circle graph indicating 71%.]

[Carissa talking to the camera in front of a grey background.]

[Circle graphic indicating 60%. Three icons appear: a car, a lightbulb, and a shopping cart.]

In fact, 71% say the uncertainty of the current environment makes it difficult to plan ahead, with their top three concerns being: rising costs of household goods such as gas, utilities, groceries, consumer goods, this represents about 60%.

[Circle graph indicating 59% and an icon of a face mask.]

Second, fear of a recession due to COVID-19.

[Circle graph indicating 34% and an icon of dollar bill with a check-mark.]

And last, 34% are concerned with slow Canadian economic growth.

[CIBC Logo. Canadians are hopeful they will meet 2021 goals.]

[Carissa talking to the camera in front of a grey background.]

[Circle graph indicating 71%. Circle graph indicating 72%.] 

The good news is that Canadians’ positivity persists: 71% feel very or somewhat positive about their overall current financial situation, and 72% feel very or somewhat confident that they will meet their 2021 financial goals. 

[CIBC logo. Canadians recognize advice is important.]

[Carissa talking to the camera in front of a grey background.]

[Circle graph indicating 52%. Circle graph indicating 42%.]

Canadians recognize the value of advice. 52% agree they need to get a better handle on their finances, and 42% say they could use expert advice on planning how to achieve their 2021 financial goals.

[CIBC logo. Advice on managing debt.]

[Carissa talking to the camera in front of a grey background.]

Here are some helpful tips for financial management during uncertain times: 

[Step 1.]

Cash-flow planning. Track all of your income, whether through regular pay cheques, government benefits, rental properties, investments or others. 

Then, track your spending, including any automatic payments out of credit cards or debit accounts, to get a realistic picture of where your money is going, where you can cut back, and how to best to redistribute your funds.

[Carissa talking to the camera in front of a grey background.]

Next, consider consolidation and credit-planning. 

[Step 2.]

There are several ways to improve your credit situation. 

An expert can help you with looking at overall debt loads, interest rate and cost associated with each. 

Next, the best steps for repayment can be considered, including paying higher interest debt first to reduce interest costs, or combining multiple debts into one loan, which can make it easier to manage payments and perhaps overall interest costs. 

[Carissa talking to the camera in front of a grey background.]

[Step 3.]

Stay focused and flexible. No matter what challenges the external environment may pose, to the best of your ability, keep focused on your financial goals and remain open to revisiting your plan to meet your ambitions. 

[CIBC logo. Financial advice on your terms.]

[Carissa talking to the camera in front of a grey background.]

During uncertain times, it can be helpful to get expert advice. Our CIBC advisors can support you in person or remotely depending on your preference. 

[Mobile phone showing the CIBC app with the Book a Meeting button highlighted.]

It’s as easy as booking a meeting online or mobile banking or on our website. 

[Person using their laptop to book a meeting through the CIBC website.]

You can simply select to meet in person or by phone.

[Carissa talking to the camera in front of a grey background.]

However you prefer to connect, a CIBC advisor can help you build a plan that maps out your short and long-term goals like paying off debt, or saving for a dream vacation, or retirement. This can help you put realistic steps into place so you can make progress toward your goals and turn your ambitions into reality.

[CIBC logo.]

[All opinions and estimates expressed in this video are as of the date of publication unless otherwise indicated, and are subject to change.]

[®The CIBC logo is a registered trademark of Canadian Imperial Bank of Commerce (CIBC), used under license. The material and/or its contents may not be reproduced without the express written consent of CIBC.]