Excessive interest rates and high fees are trapping some New Zealanders into a spiral of debt that is taking too long to get out of says Consumer Affairs Minister Kris Faafoi.

Speaking at the Commission for Financial Capability's biennial conference Faafoi said his number one priority was strengthening the Credit Contracts and Consumer Finance Act.

Faafoi said there was concerning evidence of predatory lending in New Zealand.

"Practices such as excessive interest rates are trapping New Zealanders in debt spirals that take too long to get out of."

Faafoi said people were getting loans they could not pay back.

"Frankly I think most New Zealanders would be appalled at the practices of some third-tier lenders."

Faafoi said he acknowledged some people needed to borrow, but excessive interest rates and fees were making it harder.

Faafoi said he planned to introduce the legislation by either the end of this year or early next year.

Faafoi is also ramping up his fight against wheel clampers, which he has previously described as "bottom feeders" who charge exorbitant fees.

He has called for a cap on the amount companies could charge to remove a clamp and indicated a ban would be unlikely.

However, all options are available to Cabinet when considering legislation, he told the Herald this month.

"We're still going through the process of finalising exactly where we'll land on that, whether it's an outright ban or we regulate that and cap the price of a fee to remove a clamp," he said.