Use Up Those Lingering Gift Cards

Let's think gift ideas again. The economic downturn has wreaked havoc on many large well known retailers. Some like Circuit City, Rite Aid, and Linens ‘n Things (already in the process of closing), all announced bankruptcy. Other retailers such as Eddie Bauer, Ann Taylor, Gap, Talbots, Macy’s, J C Penney, Pier 1 Import, Williams Sonoma, the Disney Store and Saks Fifth Avenue are downsizing and closing a significant number of stores.

In past years, receiving a gift card for a special occasion was always appreciated. However, now there is a real concern that the value of the gift card will immediately be lost if one of your favorite stores or restaurants unexpectedly goes out of business. You become an unsecured creditor and that gift card may suddenly have no value. A recent New York Times article by Alina Tugend, entitled The Gift Card Comes Wrapped in Growing Risk provides more information.

If you have accumulated gift cards, now is the time to spend them. And if someone is asking you for a gift idea, or has requested a gift card from you, advise them of the risks. A safer alternative is to consider a generic gift card from American Express or Visa. These are often more sensible options anyhow since you will not be limited to spending them in one specific location.

I hope you are not too frazzled studying for exams or completing those final papers. It will all soon be a distant memory. Hang in there. I'm pulling for you, sending positive energy your way.

And, how is that packing list coming? Have you been able to jot down a few "must have" items? Good, keep it going.