When my bath towels start looking worn or shabby I cut them into 4 pieces, hem them, and use them for dish towels. When these have served their purpose, I cut a notch in them and use these for rags.
Cut a notch into washcloths and use them for rags, this way you won't get them mixed up with your good wash cloths, when doing laundry.
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When I have a yard sale I tie up a bundle of rags and sell them for 50 cents each. You'd be surprised at the people who buy them!
You can also wash old towels and rags and give them to your local animal shelter, same w/old blankets, especially baby size.
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