AMERICANS are sitting on a staggering $27 billion in unused gift cards as experts warn the pile of unspent cash is continuing to grow.
Personal finance experts are urging consumers to use vouchers ahead of the holiday season to prevent them from going to waste.
Bankrate senior industry analyst Ted Rossman has urged Americans to use unspent gift cards[/caption]
Experts say people are “there own worst enemy” with unspent gift cards[/caption]
Millennials have the highest average outstanding credit value at $332, followed by $255 for Gen Xers, and $227 for baby boomers.[/caption]
The National Retail Association said gift cards were the second most popular gift given last year[/caption]
Research conducted by personal finance firm Bankrate found that 43% of US adults have at least one unused gift card, store credit, or voucher, with the average amount per person at $244.
This is up from $187 in 2023, $175 in 2022, and $116 in 2021.
Millennials have the highest average outstanding credit value at $332, followed by $255 for Gen Xers, and $227 for baby boomers.
Bankrate senior industry analyst Ted Rossman said people were their “own worst enemy when it comes to gift cards.”
Rossman urged shoppers to use gift cards promptly, either by treating themselves or buying a gift for a friend or family member.
The personal finance expert also suggested that people could sell gift cards on platforms such as CardCash or Raise.
These platforms normally offer people about 70 or 80% of what they are worth.
Experts have also warned to keep an eye out for when gift cards expire.
Consumers should contact the retailer if they are unsure of how long they have to use vouchers.
“Gift cards represent real money,” Rossman added. “It’s disappointing that the amount of unused value continues to grow.
“Stores such as Walmart and Starbucks have more than $1 billion in unused gift cards on their books.
“Here’s a homework assignment: look around, gather your unused gift cards, and come up with a plan to use them.
“You might find hundreds of dollars just lying around your house.”
According to the National Retail Federation, gift cards were the second-most popular holiday gift last year, behind clothing.
Ahead of the festive season, Rossman said shoppers should seek to “be intentional” with the types of gift cards they give to family and friends.
“Be thoughtful about what kinds of places people in your life might like,” Rossman said.
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About 43% of US adults have at least one unused gift card
“Lean into some of the interests they have, and that could be a card that is for a restaurant they like or for a hobby they might like to do.
“But on the recipient side, you need to come up with a plan to use it.”
Rossman also reminded consumers they could easily re-load gift cards if they end up with odd remainders left on old cards.
He also said people should add them to their digital wallets on their phones to ensure they are used in cases where they may expire.
The U.S. Sun has previously reported on major retail giants giving away free gift cards including Costco which partnered with a third-party company Phobio allowing customers to trade in their electronics.
In May, The U.S. Sun also reported a woman who was scammed after purchasing a gift card that had unknowingly been tampered with by fraudsters.
