CIBC Poll: Nearly half of all Canadians with debt not making progress in paying it down

Many say they simply don't have the money, but may be missing
opportunities to get advice about how to reduce their debt

TORONTO, June 5, 2013 /CNW/ - A new CIBC(TSX: CM) (NYSE: CM) Poll conducted by Harris/Decima reveals that half
of Canadians with debtsay their debt level is the same or higher than it was a year ago,
despite prior CIBC polls showing debt repayment as the top priority for
Canadians in 2013.

Highlights of the poll include:

71 per cent of Canadians said they currently carry some form of debt, in line with
the national average in a similar poll conducted last year (72 per cent)

Among Canadians with debt, 21 per cent say their level of debt has increased in the last 12 months, while
another 28 per cent say their debt level has stayed the same - which indicates nearly half (49 per cent) of Canadians with debt did not make progress towards paying it down in
the past year

The top reason cited for not making progress on debt reduction was not
having the money to do so

50 per cent said they have reduced their debt in the last year

"Though Canadians have identified paying down debt as their top
financial priority for the past three years, our poll shows almost an
even split between those who are making strides and those who aren't,"
said Christina Kramer, Executive Vice President, Retail Distribution
and Channel Strategy, CIBC. "Today's historically low interest rates
represent a real opportunity to reduce your total debt level, however
to take advantage of these low rates it is critical that Canadians have
a plan to make that happen."

CIBC's annual Financial Priorities Poll, released in January 2013, found
that paying down debt was the top financial priority of Canadians for
the third consecutive year.

"Not Having the Money" Cited as Top Reason for not Making Progress

Among those Canadians who said they aren't making progress on debt
repayment, the top reason provided was they don't have the money to put
against what they owe (29 per cent), followed by unplanned expenses which affected their ability to pay
more towards their debt (12 per cent).

A CIBC study from earlier this year shows that despite being a financial
priority, debt is not top of mind when it comes to getting advice. When
Canadians were asked what topics come to mind about a conversation they
may have with an advisor, only 6 per cent cited debt.

"It can be challenging to find the money each month to put towards
reducing your debt, but our poll clearly shows that many Canadians are
doing just that despite having the same everyday financial pressures of
those who say they are not making progress," said Ms. Kramer.

She noted that with many Canadians avoiding conversations about debt
management, they are missing an opportunity to get personalized advice
and put a plan in place.

"You should talk with an advisor about your debt management goals the
same way you would talk to them about your goals for retirement,
because your finances are all connected," added Ms. Kramer. "A
conversation with an advisor can lead to a plan that puts on you on
track to achieve your broader financial goals."

Advice on Managing Debt:

CIBC offers these tips to help Canadians take charge of their finances
and reduce debt as part of their long term financial plan.

Make lump sum payments to higher interest debt first to reduce interest
costs

If you have debt, work with an advisor to structure it to minimize your
overall interest costs by utilizing debt products that offer a lower
interest rate and having a strategy to pay these balances down in a
specific time frame

While interest rates remain near historic lows, don't ignore the long
term benefits of making small adjustments to your payment today.
Setting your debt payment even slightly higher than your required
payment can reduce your overall interest costs and help you become debt
free faster

Use free budgeting tools to help you stay on budget - CIBC CreditSmart,
available to CIBC credit card holders, allows you to set customized
budgets and receive spend alerts if you exceed your planned budget for
the month, helping you stay on top of your everyday budgeting and
saving

KEY POLL FINDINGS

Percentage of Canadians currently managing some form of debt, by region:

2013

2012

National

71%

72%

Atlantic Canada

79%

78%

Quebec

71%

72%

Ontario

71%

69%

Manitoba and Saskatchewan

73%

77%

Alberta

69%

75%

B.C.

64%

71%

Percentage of Canadians currently managing some form of debt, by age:

2013

2012

National

71%

72%

18-24

59%

51%

25-34

82%

84%

35-44

79%

83%

45-54

78%

78%

55-64

66%

67%

65 + over

56%

56%

Among Canadians with debt, percentage of those that say they have
increased their debt over the past 12 months, by region:

National

21%

Atlantic Canada

8%

Quebec

24%

Ontario

23%

Manitoba and Saskatchewan

24%

Alberta

18%

British Columbia

21%

Among Canadians with debt, percentage of those that say their level of
debt has stayed the same over the past 12 months, by region:

National

28%

Atlantic Canada

32%

Quebec

33%

Ontario

26%

Manitoba and Saskatchewan

23%

Alberta

24%

British Columbia

31%

*Each week, Harris/Decima interviews just over 1000 Canadians through
teleVox, the company's national telephone omnibus survey. These data
were gathered in samples of 2002 Canadians between March 28 to April 7,
2013 and 1002 Canadians between April 25 - 28, 2013. Samples of this
size have a margin of error of +/-2.2%, 19 times out of 20 and +/-3.1%,
19 times out of 20 respectively.

CIBC is a leading North American financial institution with over 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 Media Centre on our corporate website
at www.cibc.com.