Those due to receive benefits on Monday and Tuesday will be paid on the last working day this week. The same thing will happen the following week during the New Year statutory holidays.
Ms Reweti said this could create too much temptation for beneficiaries to spend money they didn't have.
"It's going to go crazy this weekend and next weekend. Everything is going to come crashing down around January 9 when the money's run out."
She urged those who might be tempted to overspend to make arrangements now with companies and landlords for earlier payments to come out of their accounts during the next two weeks.
"It's my fear some will say 'bugger it, the kids have had a hard year, let's just buy it'. Don't make decisions this week you are going to regret in two weeks' time."
Ms Reweti said poverty levels were the worst she'd seen.
"This year has been a lot worse due to the homelessness. It's been a real eye-opener," she said.
"Rotorua has a humongous housing issue ... Having families with little babies turn up and not have anywhere to live breaks your heart. Others have been in motels (emergency housing) for months."
On the flip side, local businesses are cashing in on the improved economy from those who have money to spend.
Rotorua Chamber of Commerce interim chief executive Allison Lawton said the latest Paymark figures backed up the Infometrics quarterly report for the month ending in September, which showed the local economy was up 6.2 per cent.
"Rotorua's economy is really going well. When I'm out and about, it feels really buoyant out there and there's a lot more people around."
She said this week was an important time for businesses to cash in and she urged retailers to ensure they not only had enough staff but to ensure those working were looked after.
"Make sure you give them positive feedback and make sure you have enough staff to allow breaks. It's really easy to stay at the till but you need to get away to keep fresh. The more you engage with customers, the more they will spend."
McLeods Booksellers joint owner David Thorpe said it had been calm and steady up until yesterday.
"Those who have left it to the last minute are out in force. All of a sudden it is quite demanding and tensions are rising."
The region's spend sits behind Auckland ($1090.2m), Waikato ($189.5m), Wellington ($250.2) and Canterbury ($292.2).
A total of $2642m was spent nationally. This represented an underlying 6.1 per cent increase on last year, once large merchants' additions and removals from the network in the interim period were excluded.
The majority (52 per cent) of spending remains through debit cards although the growth rate is faster through credit cards, which today also includes contactless cards.
PAYMARK FIGURES:
- $174.6m spent in the Bay of Plenty from December 1 to 14
- Spending up 9.5 per cent on the same period last year
- $2642m was spent nationally from December 1 to 14
