Get the full value of gift cards you receive this year

NEW YORK (AP) — Expecting a stash of gift cards for the holidays? Better use them wisely.

That’s become a little easier, because many retailers have eliminated expiration dates and fees that sap the cards’ value over time.

The changes come well ahead of proposed rules from the Federal Reserve that wouldn’t allow gift cards to expire for five years, among other changes.

Even so, about $5 billion, or about 6 percent, of what Americans spend on gift cards this year won’t be used, including what’s lost to fees, according to TowerGroup. That’s down from a high of 10 percent in 2007, said Brian Riley, research director at the financial-services consulting firm.

It’s easy to waste those nifty pieces of plastic. You might forget about them by sticking them in a sock drawer, or you might not spend the full amount. But in this tough economy, every penny counts.

“You should treat it like cash and have it be a contribution to something you really need or want,” said Laura Gurski, partner in the retail practice of consultant A.T. Kearney.

Here’s how experts advise wringing out the full value of cards you receive:

1. KEEP IT SAFE. Expert say that as soon as you get a gift card, put it in a safe place.

2. MAXIMIZE THE VALUE. Buy discounted merchandise when redeeming a gift card.

3. USE IT ALL UP. Riley says it’s better to spend beyond the value of the gift card because that will ensure that you used all of it.

4.STRATEGIZE: USE ON NECESSITIES. Want to buy that winter coat but couldn’t afford it? Use the gift card toward the big purchase.

5. EXCHANGE WITH FRIENDS. Don’t like that particular store? Then get together with friends and swap cards. You can even do it online. CardHub.com, a leading credit-card comparison Web site, just launched a gift-card application for Facebook.

6. SELL OR SWAP CARDS WITH STRANGERS. Card-bearing customers can turn to sites such as Plasticjungle.com or Swapagift.com to exchange gift cards or even donate them to charity.

7. REGIFTING. If you receive a card as a gift before the holidays, regifting is always an option.

You can also use the card to buy a holiday present for someone on your list.