605 – Owe CRA Tax Debt? The Biggest Loan Mistake Canadians Make

605 – Owe CRA Tax Debt? The Biggest Loan Mistake Canadians Make

Author: Doug Hoyes April 4, 2026 Duration: 30:23

Owing money to the CRA can feel urgent, and taking out a loan might seem like the fastest way to fix it. But in many cases, it can make your situation worse.

Doug Hoyes and Ted Michalos break down when borrowing to pay off tax debt might work, and when it creates bigger financial risk. From self-employed Canadians stuck in a cycle of owing taxes every year, to homeowners refinancing and increasing long-term pressure, this conversation walks through the real consequences of using a loan to solve CRA debt.

You'll also learn:

  • Why CRA debt feels more serious than other debt
  • What steps to take before considering a loan
  • How CRA payment plans work
  • When a consumer proposal may be the better option

If your tax bill feels overwhelming, this will help you understand your options and avoid common mistakes.

👉 Need help with CRA tax debt?

01:30 Why people end up owing tax debt
03:00 How to avoid tax debt (pay-as-you-go strategies)
04:30 Why CRA debt feels more urgent than other debt
07:00 CRA's collection powers explained
09:00 3 steps before considering a loan
12:00 CRA payment plans – how they work
14:30 When borrowing might make sense
19:00 When borrowing makes things worse
21:30 Refinancing your home to pay CRA
26:00 Loan vs consumer proposal – how to decide
28:00 Final checklist before borrowing


10 Tips for Dealing with CRA and Tax Debt Problems

CRA Property Liens and Your Home – What Are Your Options?

Debt Free Digest Monthly E-Newsletter

Debt Repayment & Consumer Proposal Calculator

Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts


Disclaimer:
The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.


Doug Hoyes sits down each week with a different specialist to untangle the complicated feelings and hard numbers around owing money. The conversations in Debt Free in 30 move beyond simple scare tactics or dry theory, focusing instead on actionable strategies for managing debt, rebuilding savings, and making informed investing choices. You’ll hear from trustees, financial planners, and counselors who explain concepts in plain language, stripping away the industry jargon that often leaves people feeling overwhelmed. Whether it’s navigating a consumer proposal, understanding credit scores, or starting to invest with a tight budget, this podcast provides a clear-eyed look at the steps toward financial stability. Doug’s approach is grounded and pragmatic, reflecting his deep expertise in the field, making each episode feel like a direct consultation with a knowledgeable guide. Tuning in regularly offers a consistent source of demystified advice, turning what can be a stressful topic into a manageable process. It’s that blend of expert insight and relatable conversation that defines this particular personal finance podcast.
Author: Language: English Episodes: 50

Debt Free in 30
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