• Forbes, Media Daily News , Monday, November 24, 2008 10:45 AM

In the wake of a spate of bankruptcies among retailers, with more feared in the near future, there has been a spate of articles recently warning consumers about using gift cards as a stocking stuffer this year. "It's getting too risky to buy cards that can be used at only one company," Forbes' Liz Moyer points out, although consumers do have some protections and advocacy groups are seeking more. Several asked the Federal Trade Commission in September to require retailers to put money from card sales in a separate trust fund that would be used for redemptions in the event of a bankruptcy.

Nor should consumers who receive gift cards be shy about indulging in a little instant gratification. "The best way to use a gift card is to spend it as soon as you receive it," says Bill Hardekopf, author of The Credit Card Guidebook and CEO of LowCards.com, which ranks credit card rates.

Consumer Reports, meanwhile, is launching its third public-education campaign about the pitfalls of debt in USA Today, warning shoppers that there is no bailout for debt, Fern Siegel reports in Media Daily News.

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