Old clothes and Fabric Scraps

If your clothes are too worn out even for wearing around the house you have some options:
-You can donate them (Even if they're too worn out for resale Goodwill sells such items together as bulk to companies that recycle them as insulation)
-You can make rags out of them
-Or you can always add some comfort and style to your life by turning them into a casual crazy quilt:

Above image from TheScope.ca

Above image from AntiqueQuilts.biz

Turns out scraps work quite well as upholstery also. The design group Squint creates great lively and easy-going pieces of furniture by using colorful patchwork for upholstery.

Above two - Images of Squint's work from ApartmentTherapy.com

Above Image of Squint's work from InteriorDesign.net