Gift cards - which ones are "safe"?

Recent retailer bankruptcies have put shoppers on edge. Gift cards, that long-time safety gift for hard-to-buy-for people, may be one of the least safe presents to buy this year. Or are they actually a safe bet?

A gift card is safe if the retailer is financially healthy. So which retailers are viable? I wish I could tell you.

But I can share what an expert I interviewed told me. If there are two direct retail competitors (like Best Buy and Circuit City), and one files for bankruptcy and goes out of business, the other one is that much stronger, making it safer to buy gift cards from.

I say "safer" because no one is hands down safe. In this economy there are "less safe" and "more safer." If you are really worried, give cash. If people turn up their nose, they are ridiculous. Giving a gift card is essentially the same as giving cash.

For ideas about how to dress up a gift of cash, check back Friday, when the Bargain Hunter Gift Guide runs in the LA Daily News!