Four Reasons to Use Your Holiday Gift Cards Sooner Rather Than Later

Chances are that this holiday season you either received or gave a gift card as a present (or both). And why not? Gift cards make great presents for that person who is just impossible to buy for or when you are simply running short on time. Besides, people love gift cards. Gift cards offer freedom and flexability and allow one to truly get what they want. But when it comes to gift cards there are some strings attached. Knowing that, there are four reasons why it may be better to use them sooner rather than later.

First and foremost is that you just may lose the darn things. It is estimated that anywhere from 10 to 20 percent of all gift cards given out are never redeemed for merchandise. That translates into billions of lost or unclaimed dollars (source: finance.yahoo.com). While that is great news for the retailers, it is bad news for you. If you use your gift card right away, you will avoid the pit-fall that every retailer relies on when it comes to gift card giving.

The second reason you want to use your gift cards in an expeditious fashion is that almost all of them have an expiration date. The expiration date can vary from a few months (I learned this one the hard way) to a few years to sometimes not at all. Inquire with the retailer that you have the gift card for and see exactly when if ever your card will expire. Many times there is an 800 number on the back of the gift card that can be called for this query. But even if it never expires, remember what we just covered; loss.

The third reason to use up your holiday gift card is the state of our economy. With the way things are going who knows what retailers will go bankrupt this year. If the retailer goes belly-up, it is up to the courts to decide if the cards have to be honored (source: finance.yahoo.com). Instead of taking the chance, use your gift cards swiftly and enjoy what you get.

The fourth and final reason is that gift cards can (and many do) come with fees. These fees are of course going to be more common on a Visa or Master Card type gift card, but many retailers are following suit and charging fees as well. When it comes to these fees, time is your enemy. Many gift cards will be charged a "dormant" fee if the card is not redeemed in a timely fashion (source: finance.yahoo.com). This can greatly reduce the value of the gift card and leave you in shock when you are standing at the check-out counter.

So gather up all the gift cards you received this holiday season and have yourself a good old fashioned spending spree and do it sooner rather than later. If the four reasons listed above don't convince you maybe the great bargains that are out there at many of the retailers due to a rough economy will. But if you lose your gift card, have it expire, have it card voided due to a bankruptcy or get zapped with fees, don't say I didn't warn you.