In the tough state of the economy, families are worrying about how they are going to pay the bills and put food on the table, let alone purchase gifts for loved ones for the holidays.

But thanks to the Internet, there are several ways for shoppers on a tight budget to capitalize on great holiday deals.

Among the hot items again this holiday season are Apple iPods -- and perhaps one of the best deals can found at the origin of the multimedia devices: Apple's Web site.

Chris Stahl of Cincinnati-based cincbay.com is an expert on finding deals on the Web -- and he told Cincinnati television station WLWT that there are great unadvertised deals in Apple's outlet store.

"I can get a refurbished, 4-gigabyte iPod Nano for $79," Stahl said. "It retails at $149."

As a bonus, the item was available with free shipping.

Stahl also found a GPS unit that retails for $219 in stores on sale through the unit's manufacturer at eBay.com for $150.

If you're looking for a hot item like Guitar Hero for video game lovers, eBay is also a great source for deals. The online auction site is stocked with deals on new and used items, as is Craigslist.com. Overstock.com sells new items at a deep discount and a search on Google-based Froogle.com can turn up all sorts of deals.

Plus, there's one more big advantage to shopping online -- that is, if you live in the northern part of the country.

"It's less cold," said shopper Kathy Briggs.