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budget lodging in Barcelona Spain

My girl friend and I are looking for a place to stay in Spain for 3 nights on Aug 2nd. The hostels online are roughly 40 euros per person per night. Will we find better deals out there on the net or have better luck arriving there and searching for a hostel? We've never been to Barcelona before. Thanks

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Try and search the apartment vacation rentals. We are booked for 3 nights at 60Euro/night. 1 BR apt. in Barri Gotic for 2 adults and young child. We leave in 2 weeks. I'll post how it went when we return. Also used them to book 4 night apt. stay in Madrid. Different landlord of course. Fairly easy reservation process. Instead of costly wire transfer through my personal bank, I was able to use Western Union at a much more reasonable fee with no problems.