Every Christmas, people give me gift cards and then apologize. The word got out long ago out that I’m not a fan of gift cards. But I guess it’s very hard to buy a gift for me, so I either get a restaurant gift card or some kind of candy. (Hmm, what does that say about me?)
The National Retail Federation reports consumer spending on gift cards during this past Christmas was expected to reach nearly $30 billion. Meanwhile, Consumer Reports has found that more than 25 percent of all gift cards given during prior holidays are still sitting unused in people’s home or wallets — one or more years later.
Merchants love gift cards because they make a tidy sum off the “breakage,” which is the amount of money on gift cards that’s paid for but never used. But the bigger risk to you is that a restaurant or retailer will go bust before you get a chance to use their gift card. In that case, you’re out the money.
Someone gave me a gift card for an ice cream parlor for my birthday last summer. I never made it to the parlor despite my best intentions. Then when I was driving by the location in September, the store was completely gone.
So here’s your assignment: Gather up the unused gift cards you got this past holiday season and use them. Go to the store, the restaurant, the spa or wherever. Turn that plastic into a meal or an outfit. Or as an alternative, read about ways you can turn unwanted gift cards into cash.
And next time you’re tempted to give someone else a gift card, I suggest you give cash or my no-giftcard gift certificate instead. It has no expiration date and the store won’t go out of business — even if this suggestion makes me seem crass.
Consumer expert Clark Howard's column appears here each Thursday in conjunction with Deal Spotter, a weekly print section in The Atlanta Journal-Constitution. Find more answers to your consumer questions at Clark's website.
-- Clark Howard -- Save More, Spend Less, Avoid Rip-offs -- for the Atlanta Bargain Hunter blog
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