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I understand money being tight, but sometimes it can be the less expensive route to take. I had a dog with skin problems for many years. His was controlled by periodic antibotics use. I'm not a big fan of using medications, but this was the only thing that worked on him. Does your dog start lapping to the point that the area smells different? is it scaley? Once the vet looked at the skin, we didn't do any further testing. He was put on meds for 10 days, and my vet gave me an open prescriptions to use when the lapping, itching started again. (my dog's breath would also get bad when the itching was going to get bad....it was almost an early warning that the skin problem was going to return.) About once every 3 months he would need to go back on the antibotics for 1 week. I did work on his diet to see if I could rule out any problem foods, but never found any real difference in his skin problems.
I'm know your lab's problem could be totally different, but a quick trip to the vet, may save you time, aggravation and money in the long run.