There’s been a lot of debate as to whether retailer gift cards are appropriate Christmas gifts.

The long-term problem has been that some people don’t spend gift cards right away, and what happens to those funds if there is a short expiration date?

Michigan lawmakers decided to address that situation, and here is a link to the Michigan’s laws on gift card redemption.

But a further aggravation for this year is the possibility that the store you chose for your recipient may go out of business in these tight economic times.

While there have been rumors on the Internet as to which stores could be affected, this financial crisis has been wildly unpredictable. Nobody really knows what the business climate will be like in early 2009.

I’m totally OK with giving and receiving gift cards.

However, I do not let my gift cards sit around. I spend them soon after I get them.

And regardless of the iffy business market and the state laws, you need to carefully select what business you choose for the gift card. It’s always best to pick a store you know that person will enjoy shopping at.

If you have someone who is on a tight budget this year on your shopping list, I suggest selecting cards for everyday needs such as gas stations, grocery stores or discount stores rather than upscale retail outlets and sit-down restaurants. You know those cards for everyday expenses will be spent quickly.

And if you don’t know what store’s gift card to pick, give cash. Money enclosed in an envelope has long been an acceptable gift, and the cash can be combined with someone else’s gift card for a very nice purchase.

(Update: National Public Radio has a piece today called Gift Card Warning – Check Retailer’s Health. The advice? Spend those cards as soon as possible!)