Why tax season is turning into a debt trap for Canadians (and how to avoid it) + MORE Apr 2nd

If you typically carry a credit card balance, you’re in good company. The recent Study of the Canadian Consumer (Winter 2026) by Vividata shows that more than 1 in 3 Canadians (36%) usually have a credit card balance from month to month. What’s striking, however, is the study’s finding that 49% of card holders are living paycheque to paycheque. That financial fragility is what makes tax season especially risky.

Many Canadians rely on their tax refunds to pay down debt or catch up financially, but when those refunds are smaller than expected (or, worse, turn into a bill), it can push already-stretched households further into debt, creating a cycle that’s hard to break.

We spoke with Stacy Yanchuk Oleksy, CEO of Money Mentors, about the challenges Canadians are facing, how to avoid a surprise bill at tax time, and what to do if you owe money after filing your return.

Why so many Canadians are vulnerable at tax time

The Vividata study polled 75,000 people nationwide to get an idea of the state of Canadians’ personal finances…

Welcome to the Canadian Crypto Observer. Financial journalist and author Aditya Nain offers perspective on market-moving headlines to help Canadian investors navigate the cryptocurrency market.

Right now, geopolitics is front of mind for investors and almost nothing else matters to the markets. Whether you invest in the stock market, real estate, bonds, or cryptocurrencies, you’re probably checking the global news section of the newspaper first thing each morning—hoping against hope for some good news, especially with regard to the US-Israel war with Iran. 

Unfortunately, Since the time of writing the previous edition of this column, the war has only gotten worse. The US and Israel continue their onslaught on targets in Iran, while Iran continues to target several gulf countries with US military bases, including Saudi Arabia, Qatar, Kuwait, the United Arab Emirates (UAE), and others. As of now, apart from a few (sometimes contradictory) tweets from President Trump, there are few signs that this war will abate as soon as we’d hoped…

I am in my 91st year and for my age, in reasonably good health. I drew down a significant extra sum in 2025 from my RRIF. Fortunately, due to some good earlier decisions, my RRIF remains with a very strong market value. I use this drawdown for two purposes: to reinvest in my non-registered accounts, and also to pass money to my three adult children (tax free in their hands). My TFSA is maximized and my income is such that I no longer qualify for OAS.

Would you please comment on this strategy?

—Robert

A lot of people hope to say they are reasonably healthy at age 81, let alone 91, Robert. I should trade you my financial advice for your longevity advice. I can address some of the considerations here for you and for other readers. 

Minimum RRIF withdrawals 

There are minimum required withdrawals from a registered retirement income fund (RRIF) each year. If you convert your registered retirement savings plan (RRSP) to a RRIF at age 71, for example, your withdrawals at age 72 must be at least 5…