Bankrupt Companies Can Mean Worthless Gift Cards

Remember when a dolly would please all little girls, and a ball would do for the boys? Giftgiving is a lot more difficult today. I can never remember which grandchildren have an Xbox and which ones have a Wii. I'm not sure if my oldest granddaughter still likes music by Good Charlotte or if she's switched to Simple Plan. I don't know if my eleven-year-old granddaughter would like a vest, or if that trend is already on the way out.

With gifting dilemmas like these, it's no wonder that I and lots of other grandparents sometimes opt for gift cards. But this holiday season, we should be extra careful about which gift cards we choose. According to an article in USA Today, when retailers go bankrupt, consumers are often left holding worthless cards. When Sharper Image went out of business this year, they left shoppers with an estimated $20 million in unredeemed gift cards. To avoid this scenario, don't purchase cards from retailers whose future seems shaky. If you don't want to get into researching the soundness of various businesses, you can buy a gift card from a credit card company, although these usually come with more fees and conditions.

Another solution for grandchildren of driving age is to buy a gift card for gas. I don't think the oil companies are going to be going out of business any time soon!