In a flap about money

One-in-five of us runs out of money before payday and at least two-thirds of us are probably worrying about money right now, new research has found.

A Ministry of Consumer Affairs survey of 700 New Zealanders found almost three-quarters of us describe ourselves as knowing "little or nothing at all" about money matters.

Two-thirds, or 66 per cent, of New Zealand said they worried about spending and/or borrowing beyond their means and one-in-five, or 22 per cent, said they had no money by the time payday came around.

The ministry carried out the survey late last year to help with targeting an advertising campaign for new credit laws coming into force on April 1.

The new Credit Contracts and Consumer Finance Act is aimed at clamping down on unfair credit practices such as loan-sharking and harsh credit contracts.

It will force lenders to disclose all aspects of a credit contract and allow a contract to be changed if someone is having trouble keeping up with payments.

It also regulates house buy-back schemes.

The survey found more than a quarter of people believed they were not good at saving and one-in-five spent money without much thought.

Of the amounts people said they borrowed, 36 per cent borrowed more than $5000 and 69 per cent borrowed more than $1000.

While half of people who said they signed a credit contract also said they read it themselves, 28 per cent didn't know whether details of the cash price of the goods on hire purchase were spelled out in the contract.

* Too many elderly people are being swindled by pyramid schemes and get-rich-quick scams, says Consumers Institute chief executive David Russell.

Mr Russell said there was a disproportionate number of Bay of Plenty people making inquiries to the institute about such schemes, possibly because of the region's ageing population.

- NZPA