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Debt reduction key for Canadians in 2010: Manulife Financial

Canadians are looking to reduce household debt in 2010, according to a poll by Manulife Financial. About 28% of Canadian respondents said their top priority is trimming their consumer debt, up from 24% a year ago and 20% in early 2008.

Canadians are looking to reduce household debt in 2010, according to a poll by Manulife Financial.

About 28% of Canadian respondents said their top priority is trimming their consumer debt, up from 24% a year ago and 20% in early 2008. Paying down the mortgage was the next most-cited priority.

Only 11% said saving for retirement was a priority, down from 14% a year ago.

Overall, the survey said Canadians felt less confident about their financial health with 46% saying they believe they are in better financial health than five years ago, down from 51% in 2009 and 60% in 2008.

Investment sentiment also fell in the fourth quarter after gains in the first three quarters of 2009. Investing in one's home, either through renovations or paying down a mortgage, remains the most popular place for Canadians to put their money.

About 65% said now is a good time to invest in their own residence.