Poll reveals most Atlantic Canadians are taking a "do-it-yourself" approach to managing debt instead of consulting an advisor to map out a strategy

Highlights:

• 71 per cent of Atlantic Canadians report holding some form of debt compared to 72 per cent nationally
• 64 per cent of Atlantic Canadians surveyed say they are making good progress towards paying down their debt so far in 2011
• Only 22 per cent of Atlantic Canadian respondents have talked with an advisor about how to better manage their debt in the last year
• 43 per cent of Atlantic Canadians see their current level of debt as an obstacle to reaching their future financial goals

TORONTO, Aug. 8, 2011 /CNW/ - A new poll from CIBC conducted by Harris-Decima shows that while Atlantic Canadians are taking steps towards reducing their debt in 2011, many still see their debt as an obstacle to achieving their financial goals, and may not be using all available options to help them become debt-free sooner.

In Atlantic Canada, 71 per cent of residents report holding some form of debt, while 29 per cent say they are debt-free.

• 88 per cent of Atlantic Canadians are aware of the total monthly amount they put towards their debt each month

Among Atlantic Canada residents who reported holding some debt as part of the poll, 64 per cent say they are making good progress towards paying down their debt so far in 2011. The steps these Atlantic Canada residents have taken this year include:

• 45 per cent have made at least one lump sum payment towards their debt
• 36 per cent have instituted a household budget, compared to 44 per cent of respondents across the country
• 44 per cent see themselves as making sacrifices in order to better manage their debt

According to past CIBC research released in January 2011, paying down debt was named the top financial priority among Atlantic Canadians this year.

"Managing debt as part of their overall financial plan is top of mind for Atlantic Canadians in 2011, and these latest poll results show that some progress is being made," commented Christina Kramer, Executive Vice President, Retail Distribution and Channel Strategy, CIBC. "Taking simple steps such as making an extra payment or implementing a budget for your family can make a positive difference in your long term plans for debt reduction."

Despite signs of progress, the poll also revealed that most Atlantic Canadians are taking a 'do-it-yourself' approach to debt management, and may be missing opportunities to accelerate their debt repayment in the process. Among Atlantic Canadian respondents with debt, only 22 per cent have had a conversation with an advisor sometime in the last year about strategies to reduce their debt faster.

"Canadians often associate getting financial advice with topics like saving for retirement and investing, but they should also think about making debt reduction part of a broader conversation with an advisor about their overall finances," commented Ms. Kramer. "These poll results suggest that more Atlantic Canadians could benefit from a conversation with an advisor that takes a broader view of their finances and can help them put a plan in place to make continued progress on paying down their debt."

Making continued progress on debt management will be integral to the long term financial plans of many Canadians, as 43 per cent of Atlantic Canada respondents who hold debt see it as an obstacle to their long term financial goals.

"Building savings and putting money away for life events such as your child's education or your retirement are important goals for many of us, and ensuring that you manage your debt effectively while also working towards those goals is key to long term financial success," added Ms. Kramer.

Atlantic Canadians looking to reduce their debt should consider the following tips and advice:

Meet with an Advisor and Build a Strategy: An advisor can help to identify opportunities to reduce interest costs and structure a repayment plan that allows for debt reduction while also building towards other important financial goals such as building savings.

Pay Higher Interest Debt First: Almost half of Canadians with debt reported making a lump sum payment to their debt so far in 2011. To maximize the effectiveness of these payments, direct these extra funds to the highest interest rate debt you hold to help reduce ongoing monthly interest costs.

Manage and Track Spending: Free services like CIBC CreditSmart can help Canadians stick to their budget. Free to CIBC credit card holders, CIBC CreditSmart allows clients to set a budget limit on each spending category on their credit card, and be notified by phone, email or online message when they exceed their customized budget.

Stay on Top of your Chequing Account: CIBC Mobile Banking allows you to stay on top of your chequing account balance anytime, anywhere. You can check your balance and monitor your daily spending using your smartphone. You can also make transfers to your savings account, or send and receive Interac Email Money Transfers.

KEY POLL FINDINGS - Atlantic Canada

Among residents who hold at least some debt, does your current level of debt represent an obstacle in achieving your future financial goals?

A significant obstacle - 12%
Somewhat of an obstacle - 31%
Not much of an obstacle - 34%
Not at all an obstacle - 22%

How much progress would you say you've made on paying down your debt this year?

Very Good Progress - 26%
Good Progress - 38%
Fair Progress - 21%
Poor Progress - 10%
Very Poor Progress - 4%

Each week, Harris/Decima interviews just over 1000 Canadians through teleVox, the company's national telephone omnibus survey. These data were gathered in a sample of 2,008 Canadians between June 30, 2011 and July 10, 2011. With 201 of these surveys completed in Atlantic Canada, the regional data has a margin of error of +/-6.9%, 19 times out of 20.

CIBC (CM: TSX;NYSE) is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com.