Show #509 Airing Sunday, 1/24/10
If money is so tight, why are Ohioans like you and me throwing away millions of dollars every year? Here to explain, and to help us hold onto our money, is my law partner, Mike Solomon, whose advice is always right on the money.
Question:How are we throwing away millions of dollars a year?
Answer: The answer is: gift cards.
a. Christmas wasn’t too long ago, and I’ll bet many of your viewers received gift cards.
People like gift cards because they’re convenient, and you can get exactly what you want. They beat having to take back that sweater that just isn’t your taste.
But lots of folks don’t use all the money on their gift cards.
In one year alone, Best Buy kept $38 million in unused gift cards, and Home Depot kept $37 million. That’s a lot of unused gift cards.
Question:Why don't people use their gift cards?
Answer: Several reasons. Some people lose them. Others put them aside, find them months or years later, and figure that the card must have been used up, or is no longer usable. And maybe the biggest loss results from partially used gift cards. You may only use $22 of your $25 card, and the remaining $3 goes back to the store.
Question:How long do we have to use our gift cards?
Answer: The law provides that cards cannot expire for at least 5 years, and fees for inactive cards cannot begin within the first year.
Question:What's the best way to avoid losing money on a gift card?
Answer: There are several options.
- First is to use the card as soon as possible after you get it. Don’t stick it in a drawer somewhere.
- And try not to use only part of the card, thinking you’ll use the rest sometime in the future. Try to use the entire card at one time. You can add money to the purchase as well if the card isn’t sufficient.
Question:Can you cash the card in for cash?
Answer: That depends on the card. Some cards, like Citicards, generally allow you to exchange the card for cash at any visa member bank.
Question:Is there any other way to avoid losing money?
Answer: Yes. There are web sites where you can sell or swap gift cards. These include: Plastic Jungle, Giftcardrescue, and Swapagift.
Please know that there will be a charge for these services.
Or you can donate a gift card to charity.
Don’t waste money. And don’t give a gift to your local retail store. Mike’s given us a gift of his advice today. Use it!
