At least one business sector is booming during this current economic downturn: pawn shops. According to a report on The Today Show, more and more people are turning to pawn shops as a source of quick cash to make it from payday to payday.

Unfortunately, pawn shops always have the upper hand during pawn transactions. They know that the people seeking a loan or looking to sell their goods are desperate for cash. At best, you'll get about 25 cents on the dollar for items you are trying to pawn.

If you're simply looking for a loan, and not necessarily wanting to sell an item, pawn shops are certainly a better option than payday or check loans, which can charge interest rates of more than 400 percent. Still, there are better options than pawn shops if you are looking to make some quick cash by selling your stuff.

1. Craig's List. Craig's List tops my list for one good reason: it's free. It doesn't charge you to list your items. I recently sold a painting on Craig's List to someone in another state. We handled the transaction by email, and I was paid promptly. I and the buyer were both satisfied, there was no auction involved and I got the price I wanted for my painting. Simple.

2. eBay. You can make more money through an auction on eBay. Or less. It depends upon the market for the item you are selling on eBay. Of course, you can always sell an item without an auction with the "Buy it Now" feature on eBay. Also, you will be charged a listing fee.

3. Garage sales. I have made decent cash at garage sales before, and I have had garage sales which have completely tanked. According to the Today Show report, you can expect to get about 10 cents on the dollar for the items you sell at a garage sale, which is even worse than what you would get at a pawn shop.

I am a big believer in downsizing, but typically you are better off doing so when the economy is OK, not when it is sputtering and the marketplace is flooded with people trying to sell their used items, which usually turns it into a buyers market. You're more apt to make more money on the items you are selling when people have the money to buy the things you are trying to sell.

It's the day after Christmas, and if you think the lines at the mall are long gone, think again. There will be plenty of people back at the malls today, returning or exchanging gifts that they don't want. Luckily, I love all of the gifts I got this year, but I remember a few years ago receiving a garish sweater that looked like a television test pattern. I promptly exchanged it for something else.

So, how can you get the most from a gift you received that you just don't want and can't use? There are a few alternatives:

Re-gift: Yes, re-gifting has gotten a bad name, especially after that episode of Seinfeld in which George Costanza was trying to unload a cashmere sweater on every woman he knew. There are practical ways of re-gifting however. First, ask around to your friends and family (preferably people who don't know the original "gifter") and find out if they want the item, or want to trade if for something that they received that they don't want. Never try to pass off the re-gifted item as something you purchased. Simply tell them, "I received this gift, it's not right for me, but perhaps you would like it?" or "I received this, but thought you might appreciate it more". Don't try to give it to somebody six months from now as a birthday present.

Exchange: For the most part, stores will exchange a gift or at least give you store credit for a returned item. They are making it more difficult to return a gift and just collect the cash. After all, you didn't buy it. Target is one of the stores which issues a "gift receipt". While you can't trade in your unwanted gift for cold hard cash, they will allow you to return it for store credit or exchange it for something else they sell. Of course, the person who gave you the gift needs to give you the gift receipt to make this happen. Other stores will do this without a receipt if it is obviously something that they sell exclusively, such as a store brand item. If you don't know where the gift was purchased, you may be stuck unless you...

Sell: You can always sell the unwanted item on eBay or Craig's List. You could possibly make more money than the value you would receive if you returned the item to the store, especially if it was a clearance item or if the item is very popular. Of course, if it is popular, you probably want to keep it, right?

Donate: If you really want to keep in the spirit of Christmas, you could donate the unwanted item to the Salvation Army or Goodwill. The good news is you could receive a tax credit for making a charitable contribution, which will come in handy next April. Just make sure you get a receipt when you make the donation. You will also be helping a great cause.

I did well this Christmas. I received clothes I needed, Drakar cologne and an IPod. I will be keeping everything. I hope Santa was good to you this year, too!

I like to think that there is plenty of great frugal living advice here at Savvy Frugality, but there are many, many other blogs out there on the subject, and I like to highlight them here through the Festival of Frugality, a blog carnival on frugal living. Of course, Savvy Frugality participates in the festival, too. Here are some blog posts from the latest festival which caught my eye:

Be Organized and Be Frugal

Slash Your Winter Heating Bills – 7 Free Ways to Save Money This Winter

How to Bid to Win on eBay and Save a Fortune

#5: Live Below Your Means