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Recycle clothing to use in quilting -- wool fabric for felted wool projects and save buttons for craft or quilting projects. Bits of trim, embellishments and fancy fabrics can be incorporated in crazy quilting. Worn cotton fabric can be cut up for cleaning rags.
Use felted wool and trims in a Wool Heart Valentine.
More to check out:
Scrappy Quilt Projects
Free Fat Quarter-Friendly Quilt Patterns
Q&A with Darlene Zimmerman