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

Apr 4, 2026

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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.