Time to use gift cards

It's a great idea to use any gift cards you have NOW. With the economy on the brink of a depression, you never know what stores are going to file for bankruptcy and leave you with a wallet stuffed with useless plastic.

Anyone with a gift card from Sharper Image will know what I'm talking about. When the store filed for bankruptcy it stopped accepting gift cards. Then later it accepted them but only for up to 50% of the bill. In short, it was a mess for shoppers.

Try especially hard to spend any gift cards you have had for a long time - like my five-year-old Pottery Barn gift card. I shudder at the thought of how much inflation has eaten into my buying power. In the long run a gift card is not as good as cash and, with the way the economy is going, exchanging it for material items may benefit you.

Consider using the card to buy a holiday gift. If not, look for an item for yourself. If nothing strikes your fancy, think of what you may need in 6 to 12 months. A new set of sheets? New underwear? Spend it on staple items like these and you won't go wrong.

If you have a gift card from a store that goes bankrupt you may have a chance of collecting, but is it worth the hassle for $25 or $75? Save yourself the stress and spend it soon. Keep the receipt in case you want to exchange it.