Tips for Last-Minute Shopping

With less than 48 hours to go before the big day, holiday shopping is in high gear. According to the National Retail Federation, 20 percent of holiday sales will occur this week -- a large percentage in the next two days. MasterCard is predicting its single busiest hour of the year, in terms of transaction volume, to occur from 2 p.m. to 3 p.m. on Christmas Eve.

With this as the backdrop, here are some important tips if you still have room under the tree:

Mellody's Merry Tips:

  Your procrastination may pay. Believe it or not, last-minute shoppers may be able to get the best deals. This year, one-third of shoppers are procrastinating even more this year than last year, which could be related to the shopping season being two days longer this year. The good news for those who have not completed their shopping is that they may be rewarded with sales and discounts.

  Time is money. With less than two days remaining, the Internet and phone are the way to go. Do not forget the old cliché, "Let your fingers do the walking …" as calling before you shop can save you critical time and money. The extra 30 minutes it may take you is well worth the savings. Not only will you be able to comparison-shop for the best price, but it will allow you to avoid last-minute, frenzied impulse buys. Obviously, online retailers will not be able to deliver your items by Saturday, so consider a printout of the item and a bow on top to give your recipient something to look forward to after Dec. 25.

  Give a gift card or swap one. Approximately 50 percent of consumers said they would like to receive a gift card this holiday season, an increase of almost 10 percent from 41.3 percent in 2002, according to the National Retail Federation. Additionally, 74.3 percent of consumers will purchase gift cards, with the average person buying 3.38 cards for a total cost of $108.28.

If you receive a gift card you do not want, instead of leaving it in your wallet to expire, register it online at swapagift.com or cardavenue.com. Both of these sites allow consumers to buy, sell or trade gift cards with other users. The transaction fees range from $3.99 to 6.25 percent of the value of the card. This is not only a good way to get rid of a card you do not want, but an excellent means to finding a good deal. For example, as of Wednesday a Pottery Barn card with a balance of $320.15 was being auctioned for $290 on swapagift.com and a $500 Pier One Imports gift card was available for $425 -- a savings of 10 percent and 15 percent!

  Give a gift card to cash in on sales. Another major benefit of gift cards is they allow the recipient to take advantage of post holiday sales. Thanks to gift cards, the National Retail Federation estimates that 10 percent of all holiday shopping will occur after Christmas -- prime time for bargain hunters. Many retailers Dec. 26 like Black Friday (the day after Thanksgiving) and significantly mark down goods they were unable to sell prior to the holiday. Additionally, January is usually a good time to buy big-ticket items like televisions as there is often a price war between retailers leading up to the Super Bowl.

And Remember …

  Beware of the gift receipt. Give the actual receipt instead of the gift receipt to ensure your recipient receives the maximum value of your gift. When it comes to returning, many retailers will only exchange or offer a store credit if a gift receipt accompanies the item. In addition, many retailers offer an exchange equivalent to the price of the item that day, as opposed to what you have originally paid. Ultimately, if someone is returning your gift in the first place they will know what you spent, so there is no need to hide behind the gift receipt.

  Use debit instead of credit. The average household has credit card debt of $9,205, according to CardWeb.com, and the holidays tend to make this burden even greater. In fact, people who use credit cards to purchase gifts tend to spend 30 percent more, according to LowerMyBills.com. However, by using a debit card instead of your credit card, you force yourself to spend only what you have thereby avoiding additional credit card debt. To keep yourself honest, leave your credit cards at home and only take your debit card with you -- that way you will not be tempted to use your credit card if you run out of money or fall in love with a gift not on your list.

Mellody's Math: If the average American charged holiday expenses of $702 and only paid the minimum of $17.55 a month, with an average annual percentage rate of 13 percent, it would take 93 months -- nearly eight years -- to pay off the debt and they would pay an additional $358 in interest.

Mellody Hobson, president of Ariel Capital Management (arielmutualfunds.com) in Chicago, is "Good Morning America's" personal finance expert. Ariel associates Matthew Yale and Aimee Daley contributed to this report.