Canadians are prioritizing debt repayment in 2026 as financial confidence softens

Canadians are heading into 2026 with a sharper focus on financial discipline, according to a new poll from CIBC.

The new survey suggests households are putting debt reduction and day-to-day cash flow ahead of longer-term financial goals, reflecting ongoing pressure from higher living costs.

According to CIBC’s annual Financial Priorities Poll, paying down or eliminating debt is the top financial priority for Canadians in 2026, cited by 16% of respondents, tied with keeping up with bill payments at 16%.

At the same time, Canadians’ financial confidence has cooled somewhat, unsurprisingly. While 70% say they feel confident about achieving their financial goals next year, that figure is down from 76% in 2025, signalling a slightly cautious outlook as Canadians reassess as we head into 2026.

Some confidence remains — but with less margin for error

The poll suggests Canadians still feel reasonably resilient, but that confidence is becoming more fragile. Just over half of respondents (55%) said they feel prepared to weather an unexpected financial shock, down from 59% a year earlier.

That erosion matters because it reflects shrinking buffers, rather than collapsing optimism. Many households still believe they can manage, but with less room for surprise expenses, income disruptions or more rising costs piled on.

“While confidence in future financial goals remains high, it’s clear that Canadians are feeling some near-term pressure around the management of cash flow and month-to-month expenses,” said Carissa Lucreziano, vice-president of financial planning and advice at CIBC, in a statement.

For consumers, the takeaway is that financial stress is increasingly about liquidity and timing, not just long-term planning. Even households that feel stable are paying closer attention to bills, balances and short-term obligations.

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Debt and bills come first — but Canadians aren’t abandoning long-term goals

The renewed focus on debt repayment reflects ongoing cost-of-living pressures. With essentials like groceries, housing and utilities still taking up a large share of household income, many Canadians are prioritizing financial stability over accelerating wealth accumulation.

At the same time, the poll suggests caution hasn’t turned into paralysis. Forty-three percent of Canadians say they plan to start or increase investing as a New Year’s resolution, signalling an effort to keep longer-term goals in view.

Canadians appear to be looking for ways to make progress without overextending — reducing high-interest debt, staying current on bills and approaching investing more selectively than in past years marked by volatility.

A cautious reset as Canadians head into 2026

The data from CIBC suggests that confidence remains relatively high, but it’s paired with tighter discipline and more realistic expectations about what households can carry.

For many Canadians, that reset is showing up in practical ways:

• Tackling high-interest debt before taking on new commitments
• Protecting or rebuilding emergency savings
• Being more selective about spending and investing decisions
• Delaying larger financial moves until cash flow feels more secure

“Personalized advice and proactive planning can make a real difference in structuring a plan that makes sense for your current situation and can build confidence in achieving long-term goals for you and your family,” said Lucreziano.

Heading into 2026, the prevailing mindset appears less about optimism or pessimism and more about control — an effort by households throughout Canada to steady the financial ship before pushing forward again.

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