I use an Okuma Coronado CD-50 on a 6'6" Penn Mariner rod for live bait fishing in the Merrimack. You can pick up a combo like this on ebay for well under $100 or maybe a few dollars more at your local tackle store.
For livelining mackerel or pollock I put a 2 ounce egg sinker on the line above a snap swivel and then attach the bait with a 2-3' snelled leader. I typically only use 15 pound test mono and the leader is 20 or 30 pound test.
There are plenty of other tactics out there, but I have always had good success with this setup.
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