Everyone uses towels year round but in the summer, I know I seem to find them worn out and ripped more than any other time of year. When the beach towels get so thin you can see through them, they are not going to do much of the job they are intended for but there are usually parts of the towel that are just fine.... and those good parts make the padding for potholders that I make for Christmas... This year I am hitting the supply of worn towels a little early to make a pot holder, or two, for my daughter and her first dorm experience.
Whatever you do, don't just toss an old towel... find usable spot or hem up a sizable section to create your own towels to make baby bibs... even if you just use them as rags, it saves!

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I “saved” a couple of towels with frayed sides by sewing on matching or complementing bias tape over the edges, using a zig-zag stitch.
I cut the usable parts into matching shapes, sew or serge them together. Then put enough pieces together to make a bathmat size shape, do the same thing for another side. Sew them right sides together leaving an opening for turning. Either hand sew the opening, or I close that opening with the edge/top stitching I then do all around the outside.
These are the nicest bathmats for putting wet feet on. They are heavier, and my hubby loves them. Plus you can very easily use the opposite side if someone gets out with their little feet, not as clean as they should be. Grandsons are famous for this.
I cut old, ,ragged towels into 3 inches squares to scrub my face. I use them once or twice and throw them away, It’s like having a gentle peeling treatment !. Also, old towels sewn into simple bags are the best to store lettuce an etc. in the fridge. Larger squares are great for cleaning porcelain or leather products or furniture. Lastly, my husband loves to use old towels cut in half to dry the car after washing it. Old towels never die.!
I donate them to a charity: Value Village