Here's a good piece of advice from US News on what to do if you received gift cards for the holidays. In particular, this advice made a lot of sense to me:
Spend it quickly. With more retailers expected to go out of business in 2009, gift cards could quickly be rendered worthless. So if you receive one, make sure to spend it as soon as possible. (Shopping in late December and early January will also get you post-Christmas discounts.)
We received several gift cards this year and this is EXACTLY what we plan to do with them -- spend them quickly in conjunction with after Christmas sales. In fact, that's what we'll probably be doing later on today.
BTW, we also gave gift cards, but only gave out Meijer cards, so the recipients can be pretty sure that their cards will be useable for a long, long time.
I wound up with a Border's gift card this year. Based on some articles I've read online several analysts/authors are speculating that they will be one of the first retailers to fall. Which is, I think, a bit sad. The only two major bookstores left are Border's and Barnes & Nobles (at least in my part of the country.) I do like paroosing their large selection then sitting on a comfortable chair while I decide which personal finance books I want to get. (Yeah, I really only read personal finance books. It's my primary interest and its all I really have time to read.) : )
Posted by: Financial Fellow | December 27, 2008 at 02:54 PM
Convert them to cash at http://www.plasticjungle.com. You won't get face value, but the cash may be more worthwhile to you.
Posted by: Duane Gran | December 27, 2008 at 06:46 PM
A slightly more realistic reason to spend them right away is that otherwise you are likely to forget them. Also, many stores will sleazily charge "inactivity fees" after a certain period of time--that's right, they are charging you for the privilege of making them an unsecured loan!
Posted by: Sarah | December 27, 2008 at 08:04 PM
Exactly the right thing to do.
I just had someone e-mail me this morning. They had a gift card for a year or so and went to use it, and the balance was gone. Whoops.
Posted by: mbhunter | December 27, 2008 at 11:31 PM
I got one from Burlington Coat Factory yesterday when I had to return a coat my parents got me. I had the receipt, but they refused to give me the money, only a store credit. Unfortunately I don't seen anyway to use it online, so I guess I'm back to the store.
Yes, we gave gift cards. My niece wanted Bed, Bath, & Beyond, and I was very hesitant to do it. We got it for her, though.
Posted by: SAHM | December 28, 2008 at 11:56 AM
You've really changed your tune from just a few months ago when you were in "gift card accumulation mode":
"We currently have several unused gift cards as follows:
Sears - Left over from my elliptical issue with them. We're saving it for Christmas purchases and/or for work if/when we get our new house.
Macy's - Left over from Christmas last year. We hardly ever shop there and will probably use this for Christmas gifts this year.
Local ice cream place -- My daughter received for her birthday last year.
Bed Bath and Beyond -- From a rebate (I hate those things!)
I have a list of the cards we haven't used and I make sure we do eventually do use them, but it requires some diligence. I can see where others who aren't quite as organized could lose track of them."
Posted by: Pop | December 28, 2008 at 04:18 PM
Pop --
I think you're confusing me with someone else. When was I ever in "gift card accumulation mode"?
Posted by: FMF | December 29, 2008 at 08:44 AM
FMF --
He quoted what you said. It can be found: http://www.freemoneyfinance.com/2008/07/do-you-have-any.html
Frank
Posted by: Frank | December 29, 2008 at 09:25 AM
Frank (Pop too) --
Ok, but the way he said it implied that I was then accumulating cards on purpose and am now advocating getting rid of them on purpose. That's not exactly what happened. Yes, we were accumulating cards, but it was by no effort of our own -- we simply received them. We were not purposefully in "gift card accumulation mode". As such, I haven't really "changed my tune."
Just wanted to make that clear.
Posted by: FMF | December 29, 2008 at 09:32 AM
FMF --
Oh, I getcha. Was not insinuating anything... just pointing you to the post he was referencing. I don't think the original post mentions you purposefully accumulating them as you mentioned. So yeah, no tune changing :p
Posted by: Frank | December 29, 2008 at 09:39 AM