Use those Gift Cards

by Debbie Vasen | More from this Blogger

08 May 2008 10:47 AM

Do you still have a bunch of gift cards in your wallet? You haven't had the extra time to spend them yet? Well, don't wait, or you may just be throwing money away!

No matter how big the retailer may be, if they go out of business those cards are worthless. Stores like The Sharper Image left many customers surprised when they filed bankruptcy and their gift cards were zeroed out. In addition, some gift cards start to charge you a fee if you do not use them within a certain period.

Gift cards have been the rage over the past couple of years. They seem like a perfect gift as the recipient can select the perfect item. While they do have their place, it is time to start reeling them in.

Be selective when using a gift card. You can prevent most problems by reading the fine print on the back of the card. As far as ensuring the retailer will still be around, you can look for these signs there is a problem.

1. The retailer is not stocking its shelves. Many holes in inventory will often be a sign of cash flow issues. The business can't afford to pay its suppliers.

2. Many sales with very big discounts are another red flag of trouble.

3. Noticing that their name brand items are ending up in discounters like Ross, Costco, etc - this is especially true if these brands were rarely seen there before.

4. Other cost cutting measures like reducing maintenance on buildings, parking lots or websites.

In this struggling economy, there are certain to be some losers in the retail business. Don't let this natural weeding out hurt you as a customer. With uncertainty in the business world, it is better to avoid "buying into the future."

Related Articles:

*BEWARE---The Holiday Gift Card Scam

*Gift Card Pitfalls

*More Gift Ideas For Frequent Travelers

Learn more about Debbie Vasen

Debbie Vasen is a published web content editor and writer, as well as a freelance writer for various print publications. In addition to blogging at Families.

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austinchu (11) 09 May 2008 12:23 PM

Great post. I work for a company that manages and tracks gift cards, and this is the exact message w convey on savvywallet.com. I couldn't agree with you more. One thing to consider: $100B was spent in gift cards last year, and $8B was lost/unclaimed. This year, we've seen a record high of retailers filling for bankruptcy. Example: Sharper Image, Linens-n-Things, Signature Days, UTIX, and many more. As consumers we need to spend our gift cards, and not hold onto them. Gift cards are valueless unless we spend them. The only thing we can't take to the bank are gift cards.

Debbie Vasen (1072) 12 May 2008 08:37 AM

AustinChu,

Thanks for the great insight from the industry! Those little pieces of plastic can be a treasure -- but not one to hold on to!