The triple blow of recession, global credit crunch and widespread finance company failures had prompted a rash of calls during the past three months from organisations seeking information and seminars from the Retirement Commission, Ms Crossan said.
"It's about fear. People have to not panic, re-do their budget and make adjustments, but do it now," she said.
Two areas she highlighted were not taking on new credit cards to pay off other credit cards; and households should target paying off the debt with the highest interest rates.
"Not making the minium payment on a credit card can get you a bad credit rating for life. Next time you need to borrow you'll find that rating follows you," she said.
Many people made the mistake of going to a new lender to look to ease financial strain but in the first instance they should talk to their primary lender.
Even with the country in recession, households should still make the most of compounding interest accounts and try to save money "no matter how small the amount", she said.
For people with money in KiwiSaver and the New Zealand Superannuation Fund, her advice was to bear in mind both were long-term investments and were expected to show cyclical swings.
New budgeting advice and updated retirement planning options had been added to the commission's website, www.sorted.org.nz.
Ms Crossan delivered a seminar to 300 staff at the University of Otago yesterday.
She also meet members of the Dunedin City Council's economic development unit and Otago Chamber of Commerce during her three days in Dunedin.
