MARTIN Lewis has issued a warning over a popular Christmas gift that could leave you out of pocket.
The money-saving expert says families should think twice before splashing on what seems to be an easy present idea.
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Speaking on his final show of the year, Lewis says gift cards can be a risky festive present.
He said not only do they expire, but if the company they’re with goes bust you basically have no way of getting your money back.
But, Lewis said there are ways of making sure you don’t get caught out.
He said: “Beware giving gift vouchers, cash is more flexible and it is safer. Many gift vouchers have expiry dates. Next and John Lewis expire after two years.
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“Tip on that – John Lewis, go and log onto your account, look in it and it’ll give you another two years.
“Next, spend a quid on the card and it’ll give you another two years.”
He added: “Many of the gift vouchers will do that as long as you keep them active.
“But this is the problem with gift vouchers, but more so, if the firm goes bust, they are usually worthless.
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“So, if you’re gonna give a gift voucher, check the solvency of the company you’re buying.”
The fresh warning comes after Which? told customers to be wary of buying gift cards last Christmas.
The consumer website said one in ten who had received a gift card in the preceding two years did so from companies that went bust.
And a survey of 2,000 shoppers found that 7% received one for a retailer that had collapsed since March 2020.
One in five of those which had vouchers for a collapsed store had a gift card for the Arcadia Group, which owned, among other retailers, Burton and Dorothy Perkins.
But the group went bust in November 2020, putting 13,000 jobs at risk.
Some of the retailers, including Topshop and Miss Selfridge, only let customers pay for 50% of their order total using gift card credit.
The other half had to be funded by the shoppers themselves.
Lewis has offered similar advice in the past, and what to do if your gift card retailer collapses.
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He recently told how thousands of households can now feel the benefit of switching their energy supplier – and Lewis said it’s “finally” worth a go.
Lewis always went on to explain how shoppers could get £15 a month for free – and it’s so easy to do.
