Experts Offer Tips for Saving To Avoid Debt

Retail experts expect that gift cards will soar in popularity during the Christmas buying season. However, savvy shoppers will find a way to decrease the cost of this perennial holiday stocking-stuffer.

Analysts say that you can save money by buying gift cards straight from the retailer. According to Bankrate, a recent gift card survey showed that cards bought from retailers do not carry fees. In sharp contrast, gift cards purchased from the largest credit card issuers and from shopping malls are marked by fees and even expiration dates.

Bankrate surveyed some 31 gift card issuers. Less than half of those offered both plastic and electronic cards.

Meanwhile, a Connecticut-based consulting firm predicts sales of gift cards will set a record this year. Total sales may reach as high as $35 billion. That would be a jump of 25% over 2006 totals. Another study projected that the typical gift card buyer will devote $203 to gift cards, a $17 hike over the typical 2006 amount.

The consumers most likely to embrace gift cards are teenagers. As many as 98% of teenagers between ages 14 and 19 have either purchased or received a gift card. The average amount of a gift card is $53, which is a slight increase over the 2006 amount.

The popularity of gift cards can be traced to a number of factors. To begin with, they allow the card holder to buy what they want, which can result in a happier yuletide season. In fact, the satisfaction rate for gift cards is incredibly high. In addition, buyers don’t have to worry about color or size, and they can be assured they’re getting their money’s worth. Gift cards are also incredibly convenient for the giver, cutting the amount of time they have to spend shopping.

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