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    3 reasons why gift cards are a terrible idea this year

    Getty ImagesGetty ImagesEven though they're admittedly pretty lame presents, gifts cards have become a staple of the holiday season. They're a quick fix, perfect for when you absolutely have to buy something for someone but only have a superficial understanding of what that person likes-be it movies, electronics, or, in the case of my grandmother's boyfriend, prescription drugs (the man loves CVS gift cards, at least I think he does). Gift cards say, "I care enough to not just give you money, but not quite so much to figure out who you really are." It's a little sad, but it works.

    However, this year, every lazy man's favorite gift, the buy-20-bucks-worth-of-crap-at-this-store plastic credit, may be in trouble.

    According to astory today on MSN Money, consumers are poised to lose around $75 million in gift cards this year due to rampant company bankruptcies. That's because when a restaurant or store chain declares bankruptcy, cardholders, for the most part, have no rights and card values are completely wiped out. So, anyone with a gift credit for a place like the Sharper Image, Circuit City, or Bennigan's, is basically carrying the worth of my student ID card from 1992.

    That's the first reason to avoid gift cards.

    The second is, even if the company remains open, in this incredibly shaky economy many of its locations may shut down, making it inconvenient for your gift recipient to redeem his or her card. Stores like Pier 1, Disney, Loews, Foot Locker, and even Macys are all rumored to close outposts this year.

    But the last reason to stop giving gift cards might be the most important: People don't use them.

    The MSN story reports that one in four 2007 holiday gift card recipients hadn't used their present by October 2008, and that an estimated $8 billion in gift cards sold last year has yet to be spent. Even when the cards do get cashed in, high fees and strict expiration dates often render them useless.

    So, what does this mean for us lazy gift givers? Sadly, it appears we should all stop with the "thoughtful" plastic card ruse and just give cash in a cheesy Santa card. Or actually think about what we're giving this year and buy people something they might actually love and use. (See our gift guide for ideas.)

    For an interesting list of major company's gift card rules, check out this survey from creditcards.com.

     

    51 comments

    • A Yahoo! User  •  3 years 6 months ago
      Well, I use the Visa, American Express, and Mastercard, gift cards either from the site itself, or affiliate sites, it's basically a pre paid card they can use anywhere AND at ATM's if they don't mind the fees and get money off of it point of sale. My daughter, neice and nephews love it. They can use it anywhere and get whatever they want. Then again, my brother and I got our kids Visa Buxx cards a few years ago, they still have them and get direct deposit on them from their jobs, so for them we can just load the money onto their cards, it helps teach them independance and money management, they get bank statements and have certain of their own bills to pay (i.e. magazine subscriptions, cell phone bill, car insurance etc.) I wouldn't do the store gift cards even before the financial mess we're in now,
    • Jenn K  •  3 years 6 months ago
      I've never had trouble using gift cards for stores either. Come the after Christmas sales I'm there! But cards for restuarants and such those are the ones I tend to forget about for some reason... and its not like I don't like to eat, haha.
    • the truth  •  3 years 6 months ago
      I agree with Lolo and optiva. Gift cards are lame according to you, the author of this article. I have used every single gift card I have ever received, merrily, I don't think they're thoughtless gifts. I think the card means I care enough about you to not give you some lame present, that you probably won't really use, in reality. I love giving gifts cards to places like Dunkin Donuts or Starbucks, people who love to go there love the gift card. A gift card from Target is great, there's such a variety of stuff to buy there. If you don't want your gift cards you can send them to me.
    • Lisa  •  3 years 6 months ago
      I say gift cards are way better than lotions,bodywash, or some tree purchased in my name (about as bad as giving fruit cake). This article could be helpful if it wasn't so hard on those who are actually trying give something worth wild. I say when in doubt, Visa gift card it out...or a gas card, both are very pratical gifts that scream at least I tried.
    • Sheelah N  •  3 years 6 months ago
      Who are these people who arent using gift cards? I would like t be their friend and maybe take it off their hands. I love gift cards and they barely last a week after i get one. I'd never give my grandparents, I know they'd never use it. The point is, to give it to someone whom you care about but are not sure what to get them or someone who has everything. It seems the blog writer is the only one who feels this way!
    • A Yahoo! User  •  3 years 6 months ago
      Giving a gift card means knowing your receiver.
      I like to give G.C. to my sister & brother-in-law for resturants or movies because they won't spend the $ on themselves-yet I know they'll use the g.c. together and have a wonderful memory-besides they don't need any things.
      Also, I like the practical uses for walmart, CVS, and store g.c. like that-better than a gift I'll never use or don't like. Also g.c. for a person's hair stylist are great--that way you can get that little something extra done or get a cut after the holidays.
      IMO-g.c. are GREAT!!!!!
    • groovygirl27  •  3 years 6 months ago
      I agree MissK, as a mom who rarely buys things for herself, I LOVE gift cards!!! I think gift cards aren't a thoughtless gift at all. My daughter is only 10 and she loves getting them too. It's better than getting someone something that they don't like, don't need, doesn't fit, etc.
    • Masterpiece  •  3 years 6 months ago
      Just a note - in California gift cards and certificates cannot expire by law. Of course that doesn't help if the company goes out of business, but if they're still there, you can use them 25 years from now if you want to. Also, a lot of places that offer gift cards offer online shopping - so even if the recipient doesn't have a location of that store near them, they can order stuff online!
    • GentilleChanteuse  •  3 years 6 months ago
      How about Visa or American Express gift cards? Those can be conveniently used anywhere credit cards are accepted. i think that's a great x'mas gift in lieu of actual cash.
    • Habanero♥™  •  3 years 6 months ago
      splitxenz
      SPECIAL REPORT AMERICA'S MONEY CRISIS
      Circuit City closings
      Circuit City stores set to close

      NEW YORK (CNNMoney.com) -- Circuit City Stores Inc., the No. 2 electronics seller after Best Buy, filed for bankruptcy protection Monday, hoping the move will allow it to stock its shelves in time for the crucial holiday shopping season.

      The move comes about a week after Circuit City said it would close 155 stores as it deals with a worsening economic downturn that has left more consumers with less money to shop. The company intends to keep its remaining stores open through the bankruptcy proceedings.
      Smarty !!!!!!!!
    • Stephanie  •  3 years 6 months ago
      I don't have a problem with gift cards especially when your relatives live in other places. Beleive me, they are a lot easier to send then to go back and exchange at the store. If you're so worried about certain stores closing then why don't you get a gift certificate from the mall of your choice. You can still put the amount of money you want on them and they can be used at any store in that mall that you choose.
    • Frantastic  •  3 years 6 months ago
      Yeah, here is one more comment on the issue. I think the author was trying to encourage us as a people to put more energy into our gift giving. But there really is nothing like getting something you don't use or won't use. The gift card was the best thing that could have ever happened. This eliminates the fuss and stress over what to buy someone. I get excited when I receive one. And if you do have that special someone you would like to buy for, then yeah fill free to tap into their heart or personality and creatively give. But don't throw the baby out with the bath water. The gift card is brilliant!
    • JustDuckyforHedgies  •  3 years 6 months ago
      Since most of my money now a days goes towards food, and being a poor grad student in a small town a walmart gift card is a god send. It means I get to eat!
    • M M  •  3 years 6 months ago
      I love gift cards. I tend to use them as stocking stuffers. It isn't the main gift, but it gives the receiver of the card a chance to pick something out without any hassle!!!
    • A Yahoo! User  •  3 years 6 months ago
      gift cards are fine by me, its better than nothing...hey man, i love presents.
      I think gift cards from people you are really close with is lame though...i know what my best friends would love to have...i can do it without a gift card...and they should be able too as well...but i have good friends that aren't close friends and to them i say...GIFT CARD ME, BABY! I love shopping on other peoples money... good friend's money, the guy who normally wouldn't buy you anything but the pressure is on..ie. gift exchanges... the acquaintance... i don't care whose it is. ahhaha.
      I am just thankful they put their own money into me...unless it's like a home depot card when i live in an apartment... then it's like..why bother..of course i can always find something to buy... yeah... just bring on the gift cards.haha
    • kmn68  •  3 years 6 months ago
      Hey Habanero - that list is part of a rumor going around the internet. Check out Snopes.
    • joshsmom  •  3 years 6 months ago
      i would take gift card over lotion baskets any day. Even it's for five bucks I think of it as a coupon towards my entire purchase.
    • Kitten  •  3 years 6 months ago
      I give my family AMEX gift cards. This way, I never have to hear months later "oh, remember that ugly green sweater? I gave it away." Everyone gets what he/she wants. I think AMEX gift cards are better than store cards; you can use them anywhere.
    • Eliza  •  3 years 6 months ago
      I for one love gift cards. Thoughtless? I ask for them. Much more thoughtfull then giving me multitudes of useless trinkets that are just going to create more clutter. And probably not buying them due to the economy is more than a bit parinoid in places: itunes isen't going anywhere.
    • MochaMama42  •  3 years 6 months ago
      Very true. I have a JCrew gift card for $20 that I've NEVER used; I like the store, I just don't think about the gift card.

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