Is it smarter to barter?

Still, exchanging something you no longer want or need for something you do is appealing to many. A growing number of websites, including TradeaFavor.com and JoeBarter.com, cater to the cost-conscious. There were 148,097 listings in the barter category of Craigslist in September, up sharply from 83,554 a year earlier, according to the classifieds website. Bartering via Craigslist's Los Angeles service was up 72% over the same time, with 4,009 listings in September. Specialty sites such as PaperBackSwap.com and Peerflix.com, are also popular.

Jessica Hardwick, founder of SwapThing.com, started noticing an uptick in bartering in the spring. Families who were worried about the soaring price of groceries and gas started taking vacations by swapping homes with people who lived within a few hours' drive. As the kids prepared to go back to school after their trips, they bartered PlayStation games, skis, even a bicycle for school uniforms.

Interest soars

Over the last few months, her Cupertino, Calif.-based site's membership and traffic have snowballed as more people look to trade their talent and time. With 162,000 members, SwapThing.com, which used to be populated by collectors and video-game enthusiasts, has been transformed into a bustling bazaar for everyday goods and services.

"As long as the economy is the way it is, people have to find alternative ways to get the things they need and want," Hardwick said. "People are turning to the Internet."

That's where Erin Huggins, a 35-year-old Pilates instructor in Los Angeles, is building her business.

After stints promoting bands, tending bar and working for Courtney Love, Huggins traded the rock 'n' roll lifestyle for the healing arts. She opened her own Pilates studio in 2005 but had to shutter it in April, when she lost some clients who had been thrown out of work by the Hollywood writers strike.

So she shifted her strategy. Now she sees a handful of clients in a home studio, and she's growing her practice online by creating a virtual studio at ErinHuggins.com, where people can download instructional videos.

Sense of community

Huggins is also using the Internet to stretch her budget. She swapped one year of Pilates and nutritional consulting for branding and image consulting worth about $30,000. She saves $500 a month on body work by trading her services with a friend who is a massage therapist.