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For the newly laid off, life can seem bleak. Days once marked by painful morning commutes, endless meetings and wilted sandwiches at lunch now consist of hours spent searching online job ads, unshowered and bathrobe-clad, as thoughts drift to food banks and burning personal belongings for warmth.

But it doesn't have to be that way.

Tough times call for creative solutions, and as a growing number of Canadians are finding out, there are ways to get through life without draining their savings.

After all, money isn't everything.

Bartering, the centuries-old system of exchanging goods or services - without spending a nickel - is experiencing a resurgence in Canada and other countries feeling the effects of the economic downturn.

"We've noticed a huge increase in our traffic," said John Moore, founder of U-exchange.com, an international, members-only online bartering centre based in Cambridge, Ont. "It's all because of the credit crunch and the economy. People, they have to be creative now."

Membership jumped from 27,800 on Jan. 1, 2008, to 48,000 on Jan. 1, 2009. More than 2,200 members signed up from Dec. 19, 2008 to Jan. 18, 2009, compared with less than 1,400 a year earlier.

Online page views on the site also rose to nearly 730,000 in the past month, an increase of more than 123 per cent compared with a year earlier.

"It's the economy," Mr. Moore said. "I think people are just starting to hunker down a bit more."

Recent posts on U-exchange include a woman who was looking to swap time at her family's ski chalet in Whistler, B.C., for a vacation in a home in London or Paris, and another member who wanted to trade a dining-room set for home repair services.

Bartering tends to spike during a recession or times of financial uncertainty as people look for alternatives to the cash economy, Mr. Moore said.

But this is the first major downturn since the Internet age began, and the speed and ease of online trading is introducing a whole new set of people to the barter movement.

Trade-seekers have been bombarding sites such as Craigslist and other online classified-ad sites as a way to cast a wide net for possible exchanges. While some sites, such as U-exchange, charge a membership fee, many classified sites, such as Freecycle.com, just require a user registration. On sites such as Craigslist, anyone is free to post offers, free of charge and without identification.

The offers are as varied as the websites on which they are posted: A personal trainer in exchange for professional portraits; Spanish lessons for home repairs; accounting services for website hosting; a digital camera for an iPod Nano; a laptop for a PlayStation. Many users post what they're willing to trade, such as a TV, self-defence lessons, a belt buckle collection or a winter coat, and ask for offers.

"I find that as times are getting tougher, personally I'm less willing to go out and buy things for myself as well," said Darcy Delaney, who lives near Newmarket, Ont., and has dabbled in online trading for nearly two years. "If I'm in need of something tangible, I find it easier to trade for it."

Mr. Delaney, who said the idea of recycling and reducing waste brought him to bartering, has successfully traded tennis racquets for CDs and a dishwasher for a dryer in recent months. He's landed a variety of kitchen appliances in the past, and also scored an aquarium through bartering. He's also offered guitar lessons, but hasn't had any takers.

But the bartering resurgence is also built on newcomers who may have been skeptical of online trading in the past, but are now looking for options during a cash crunch.

Naomi Olsen, who lives in Toronto, has never tried bartering before. But after being laid off twice in the past year, and faced with the end of her current contract job at the end of this week, she said she's willing to try new things to get items she wants without having to spend the cash.

"People's pockets are pretty dry right now," said Ms. Olsen, 26. "I think everybody's just more open to other ideas. I think there's a community of people willing to help each other, understanding people's financial state."

Last week, Ms. Olsen took her first step into the world of bartering by posting an online request for a trainer to help her get in shape in exchange for her marketing services. Although she hasn't had any serious takers yet, she isn't deterred.

"If it does work, I'm going to be bartering a lot more," she said.

However, some old hands warn that bartering can be a risky venture.

"I think if you have good experiences doing it, then you will keep doing it," said Susan Harrop, a veteran barterer who lives in Whitby, Ont. "But there are some really sleazy people out there. ... You have to watch out for that."

Ms. Harrop said she often enters radio contests and wins prizes she doesn't want, so she trades them for items she does. She's successfully swapped concert tickets and has also traded a jewellery set for a watch. Recently, she was looking to exchange an elliptical fitness machine she no longer wanted.

One of the biggest pitfalls to avoid is scam artists looking to "trade" gift cards for other merchandise. Often, the cards are worthless and could leave an unsuspecting trader with much less than they bargained for.

But it's also important to be wary of face-to-face meetings in private settings.

"I do know people that have been robbed or attacked," said Mike Dancy, who has been bartering electronics for years.

Some people also take advantage of bartering to avoid paying taxes on goods, which could have legal consequences. For instance, if one person performed carpentry services in exchange for installation of a new appliance, both parties would incur a tax liability that, if unreported, could raise serious problems.

"You get the 'nudge nudge, wink wink, it's a good way to avoid taxes,' " Mr. Moore said, adding that bartered goods should be taken into account at tax time. "But I'm not naive [enough]to think that it doesn't happen."

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Bartering basics

Bartering is a practical way to save money and get rid of unwanted goods. But it's also an art form with its own etiquette, techniques and set of rules. Master these tips to avoid giving offence or getting ripped off - or worse.

Always be polite: Whether you're proposing a trade or declining a measly offer, be courteous.

Don't try to exchange your goods or services for something that is obviously worth much more. It wastes everyone's time.

Ask for a written or verbal agreement to solidify a trade. It's also acceptable to ask for references.

Beware of offers to trade gift cards. While some may be legitimate, veteran barterers report numerous problems with scammers looking to trade useless cards in exchange for pricey items.

Don't agree to a major trade, such as exchanging homes for a vacation, without extensive communication with the other party.

Watch out for stolen merchandise. Be cautious if a trader is looking to exchange a wide array of electronics in unopened packages.

Carly Weeks

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