Canadians will be making a bigger effort to chip away at their soaring debt levels in 2010, according to a consumer survey released Tuesday.

In the survey — commissioned by Manulife Financial and carried out by Research House — 28 per cent of those polled said paying down consumer credit was their top financial priority. This is up from 24 per cent a year ago and 20 per cent two years ago.

Paying down the mortgage was cited by another 14 per cent as their top priority, up from 11 per cent in 2009.

Saving for retirement was the top priority for 11 per cent, down from 14 per cent last year.

"Paying down debts is understandably a priority, particularly at this time of year," Manulife CEO Paul Rooney said in a release. "Given the economic challenges in 2009, we shouldn't be surprised to see more Canadians focused on ensuring their financial house is in order."

A separate survey, released by RBC on Monday, suggested that a strong majority of Canadian consumers are saying they want to get their financial houses in order. For instance, its poll of more than 1,000 Canadians in December found three-quarters of respondents were planning to finance their holiday spending with cash on hand, rather than by incurring debt.

Holiday spending rises

Data from Moneris Solutions, which handles credit, debit and online payments, showed that overall holiday spending volume in the seven weekends leading up to the new year was 3.44 per cent higher this year than last. The data came from 45,000 merchants.

The Bank of Canada has warned that Canadian households are increasingly vulnerable since the increase in total debt has outpaced increases in income.

The central bank says real consumer credit, including home equity lines of credit, grew seven per cent over the past year. That's unusual in a recessionary environment, as consumer credit actually dropped during the recessions of the early 1980s and 1990s.

"It is the responsibility of households now to ensure that in the future, when the recovery takes hold and extraordinary measures are unwound, they can still service their debts," Bank of Canada governor Mark Carney said in a December speech.

Of course, one reason why Canadians' debt levels have increased is that borrowed money is as cheap as it's ever been. Five-year fixed mortgages can be had for four per cent and home equity lines of credit charge just 3.25 per cent. But interest rates are likely to start rising later this year.