The holidays will soon be here and most of us are shopping for gifts for family and friends. Surveys have shown that many of the people on your list would truly like to receive a gift card for the holidays. This affords them the opportunity to pick out their own present and know that they will truly have something that they want and need. Unfortunately, the current economic crisis makes this a bad time to purchase these cards. If you buy from a favorite retailer, you have no way of knowing if they will be going out of business soon. Stores are closing everywhere and leaving gift card holders with little or no value. The gift card holder has no right to funds in a bankruptcy until all creditors have been paid. At that time there is seldom any money left for distribution.

If you do decide to purchase gift cards this year, or you are the recipient of cards, consider these tips:

Try to purchase your card from a popular and successful retailer.

If you have an old gift card from a troubled store, cash it in immediately before it no longer has any value.

Some bankrupt retailers will still redeem your gift cards at full or half value. You must ask if this is the case.

You can purchase general gift cards from American Express, Master Card, Visa, or Discover. These can be used at any one of hundred of businesses, but they do charge an extra fee to the purchaser.

Always inquire about fees and expiration dates when purchasing gift cards. Many cards do not have either, but some still do and you want to be certain that you are aware of these.

Check with the company if you can use their card online. Many cards cannot be used online and this is something you would certainly want to know before making a purchase.