Here's an example why experts have warnings about some gift cards.
Melanie called to tell us, "I received a gift card from a day spa for my birthday earlier this year. Apparently, it went out of business. What can I do to get my $100 of services.?"
Unfortunately, there's not much you can do in a case like that.
If the business filed for bankruptcy, you may be able to file a claim with the court, but your chances of recovering anything aren't very good.
So here are some tips for buying gift cards.
Buy a card only from a merchant you trust.
Make sure the store is in good financial position.
Read the fine print, and ask about the fees and expiration dates of the cards.
As for using gift cards, use it as soon as possible.
Check the terms and conditions of the card you receive.
Fees may be deducted every month.
And be careful not to lose it, it's like losing cash.
Studies show 25% of people who received a gift card last year still haven't used it.
If you're in that situation, experts say use it now, maybe even to start your holiday shopping.
