Gift cards are one of the most popular gifting options, but many end up unused or forgotten, representing billions of dollars in untapped value. Recent studies show that selling unused gift cards has become an increasingly popular choice, as people look for easy ways to convert this dormant asset into spendable cash. If you have unused gift cards, here’s why it might be time to sell gift cards and tap into this trend.
The Growing Popularity of Gift Cards—and the Downside
In recent years, gift cards have surged in popularity, especially during the holiday season. According to a report by the National Retail Federation, over 50% of Americans choose gift cards as a preferred gift option due to their flexibility and convenience. However, while gift cards are popular, the downside is that many go unused. In fact, estimates suggest that around 20% of all gift cards are never redeemed.
This unredeemed value, often referred to as “breakage,” accumulates into billions of dollars annually. For individuals, this means that a significant amount of potential cash remains tied up in unused cards. Selling these cards can be a simple solution for freeing up money for more immediate needs.
Statistics on Unused Gift Cards: How Big Is the Issue?
A study conducted by Bankrate found that the average American household holds about $167 in unused gift cards. The reasons vary—from cards given for stores people don’t frequent to simply forgetting to use them. Here’s what the data says about this trend:
- $15.3 billion: The estimated total of unused gift card balances in the U.S. alone.
- 51% of adults: The proportion who report having at least one unused gift card, coupon, or store credit.
- 2 years: The typical time that gift cards sit unused before they’re lost or forgotten, ultimately expiring in many cases.
Given these stats, it’s easy to see how selling gift cards has become a practical option for individuals looking to maximize the value of these overlooked assets.
Why Selling Gift Cards Has Gained Traction
As financial awareness grows, more consumers are seeking ways to reclaim the value of these forgotten cards. Selling gift cards has grown in popularity for a few key reasons:
- Convenience: With online platforms, selling a gift card is easier than ever. Consumers can quickly exchange unused cards for cash, often receiving payment within days.
- Value Recovery: By selling gift cards, individuals can recover a significant portion of the card’s value, typically 80-90%, making it a straightforward way to make the most of dormant assets.
- Flexibility in Spending: Cash offers greater flexibility than a specific store credit, allowing consumers to spend on essentials, savings, or bills instead.
What Are People Doing with the Money from Sold Gift Cards?
Data reveals that people tend to use the cash from selling gift cards in diverse and impactful ways, including:
- Debt Reduction: Many individuals use the money to pay down credit card debt, especially high-interest balances.
- Everyday Expenses: Groceries, utility bills, and other essentials are common expenditures for those who cash in their gift cards.
- Savings and Emergency Funds: With financial advice increasingly focused on building savings, some sellers are putting this newfound cash toward their rainy-day funds or other savings goals.
A Rising Trend: Selling Gift Cards as a Financial Hack
The trend of selling gift cards is picking up among financially savvy consumers who see it as a “financial hack.” By liquidating unused cards, individuals create a small but effective cash inflow that can be applied strategically to their financial goals. Whether it’s to offset a small emergency or to add to a holiday fund, selling gift cards is a way to make overlooked resources work for you.
Selling gift cards has evolved from a niche option to a mainstream choice for those looking to maximize their financial flexibility. With billions of dollars in unused balances, selling gift cards taps into a trend that aligns with smarter, more intentional financial decisions. If you’re one of the many people with unused gift cards, selling them can help you convert that dormant value into cash for the things that matter most.
